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View Full Version : Monetary base expands by 8% in two weeks (Fed H3)



krakknisse
10-02-08, 08:31 AM
Please help me make sense of the 8% increase in the monetary base from September 10th to September 24th
http://www.federalreserve.gov/releases/h3/Current/
Non-borrowed reserved decreased by 31 billion, now at -157 billion (-25%). The non-borrowed reserves is old news, but getting worse.

But the monetary base increased from 843 billion to 907 billion (8%). Annualized, that's 685%. Not that it is going to continue at that level, but it is a hell of a lot of money in a short time.

Isn't this the start of inflation (the POOM in ka-poom)?

bam
10-02-08, 08:48 AM
Making money available isn't the same as lending money.

Supercilious
10-03-08, 10:29 PM
Isn't this the start of inflation (the POOM in ka-poom)?
Not yet (if there is any POOM)