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0 pointsbryanlarsen2y ago0 comments

M2 growth relative to the growth of size of the economy is basically the same as inflation, in the Milton Friedman Chicago school.

So if M2 growth and the S&P 500 are similar, that means that the S&P 500 is fairly well correlated with the size of the economy. Quelle surprise!

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rafaelero2y ago

Hmm. Looks like M2 growth can be seen as GDP growth + excessive money supply (inflation) then. That is, whenever M2 decouples from GDP, then it most likely will convert to inflation.

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0 pointsbryanlarsen2y ago0 comments

M2 growth relative to the growth of size of the economy is basically the same as inflation, in the Milton Friedman Chicago school.

So if M2 growth and the S&P 500 are similar, that means that the S&P 500 is fairly well correlated with the size of the economy. Quelle surprise!

0 comments

rafaelero2y ago

Hmm. Looks like M2 growth can be seen as GDP growth + excessive money supply (inflation) then. That is, whenever M2 decouples from GDP, then it most likely will convert to inflation.

j / k navigate · click thread line to collapse