{"id":18561,"date":"2016-03-07T12:27:43","date_gmt":"2016-03-07T17:27:43","guid":{"rendered":"http:\/\/olduvai.ca\/?p=18561"},"modified":"2016-03-07T12:27:43","modified_gmt":"2016-03-07T17:27:43","slug":"downtrend-in-the-growth-rate-of-money-supply-poses-a-threat-to-bubble-activities","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=18561","title":{"rendered":"Downtrend In the Growth Rate of Money Supply Poses a Threat to Bubble Activities"},"content":{"rendered":"
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DOWNTREND IN THE GROWTH RATE OF MONEY SUPPLY POSES A THREAT TO BUBBLE ACTIVITIES<\/a><\/h3>\n<\/div>\n<\/header>\n
The yearly growth rate of real gross domestic product eased to\u00a01.9<\/b>% in Q4 from\u00a02<\/b>% in the previous quarter.<\/div>\n
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Using our large scale econometric model we can suggest\u00a0that the yearly growth rate of<\/b>\u00a0GDP could fall to 1.7% by Q3 before bouncing to 2.4% by Q4<\/b>. By Q4 next year we forecast also a figure of\u00a02.4<\/b>%.<\/p>\n

\"Shostak1\"<\/a><\/p>\n

Other latest data portrays a mixed picture of economic activity. The yearly growth rate of durable goods orders jumped to\u00a01.8<\/b>% in January from minus\u00a00.1<\/b>\u00a0in the month before.<\/p>\n

Meanwhile the Kansas Fed manufacturing index fell to minus\u00a012<\/b>\u00a0in February from minus\u00a09<\/b>\u00a0in January.<\/p>\n

Also, in the housing market there are mixed signals with the yearly growth rate of existing home sales climbing to\u00a011<\/b>% in January from\u00a07.5<\/b>% in December while the yearly growth rate of new home sales plunged to minus\u00a05.2<\/b>% in January from\u00a09.9<\/b>% in the month before.<\/p>\n

\"Shostak2\"<\/a><\/p>\n

Furthermore, Conference Board\u2019s consumer confidence index has weakened in February from January with the index falling to\u00a092.2<\/b>\u00a0from\u00a097.8<\/b>.<\/p>\n

\"Shostak3\"<\/a><\/p>\n

Changes in various indicators by themselves do not provide the information about the underlying reason for these changes. In our writing we have suggested that the key is the state of the pool of real wealth.<\/p>\n

We suggest that strong increases in the yearly growth rate of money supply prior to its major peak in October 2011, when the yearly growth rate closed at\u00a014.8<\/b>%, were instrumental in undermining the pace of real wealth generation.<\/p>\n

Since October 2011 the yearly growth rate of our measure of money AMS has been following a choppy declining trend. We hold that this is undermining various bubble activities, which sprang up on the back of past strong monetary rises.<\/p>\n

…click on the above link to read the rest of the article…<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

DOWNTREND IN THE GROWTH RATE OF MONEY SUPPLY POSES A THREAT TO BUBBLE ACTIVITIES The yearly growth rate of real gross domestic product eased to\u00a01.9% in Q4 from\u00a02% in the previous quarter. Using our large scale econometric model we can suggest\u00a0that the yearly growth rate of\u00a0GDP could fall to 1.7% by Q3 before bouncing to […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[7380,235,240,303,305,9456,12790,4520,954],"class_list":["post-18561","post","type-post","status-publish","format-standard","hentry","category-economics","tag-cobden-centre","tag-economic-bubbles","tag-economic-growth","tag-fed","tag-federal-reserve","tag-gap","tag-kansas-fed","tag-m2","tag-money-supply"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/18561","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=18561"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/18561\/revisions"}],"predecessor-version":[{"id":18562,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/18561\/revisions\/18562"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=18561"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=18561"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=18561"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}