3 ms·
Speculative bubbles have always and everywhere been about inflation of the money supply. Dutch tulips, south sea bubble, mississippi company, 20s stocks, nikke
by kingkongrevenge 19y ago
Speculative bubbles have always and everywhere been about inflation of the money supply. Dutch tulips, south sea bubble, mississippi company, 20s stocks, nikkei, dot coms -- it's ALWAYS been about the money supply.
Here is why finance has changed so much and become such a big deal since the early 90s:
http://www.mises.org/content/nofed/makegraph.php?tms=true&unit=lin&range=max&bars=true&size=med&Make+Graph=make http://www.mises.org/content/nofed/makegraph.php?tms=true...
- ctkrohn 19y agoWhat's the methodology and data behind that graph? The fact that it refers to "True Money Supply" rather than established measures like M1, M2, M3 has me rather skeptical.
- astine 19y agoI did a search and found the chart in context: http://www.mises.org/content/nofed/chart.aspx?series=TMS http://www.mises.org/content/nofed/chart.aspx?series=TMS The TMS is heterodox measure, but it has been in use for years.
- vlad 19y agoWhat change does the graph illustrate? Each 10 year period is double what it was before. It's not a linear function but it wasn't in the first place. Thanks.
- kingkongrevenge 19y agoThere is an inflection point in 1995 when reserve requirements were dramatically lowered, permanently as it turned out.