Re: borodog\'s mistaken understanding of M3...don\'t listen to his drive
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these financial derivatives do not link to the real economy like the measures of M1 and M2 and thus don't correlate at all with any lag you choose to price changes.
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Before we get into any of this, what are you using to calculate price changes?
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importantly, M2 DOES communicate good info about both the rate at which borrowing is readily available to US consumers and teh rate at which they take advantage of this borrowing. that is a major issue since the increase in M2 coincides very nicely with the decline of savings in the US.
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This is a curious choice of words, since US consumers are far from the only people who hold US dollars. Was this simply a generalization (equating US consumers with dollar holders)?
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