From: "Jose Bailen"
Newsgroups: misc.invest.financial-plan
Subject: Re: Fidelity's portfolio advisory services, Yay or Nay?
Date: Tue, 27 Feb 2007 07:53:02 -0600
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On Feb 27, 11:03 am, darknes...@yahoo.com wrote:
> Which probably means it is just about relevant again!
>
> What is the alternative monetary aggregate that they publish?
M0, M1 and M2. In any case, the relationship between money supply and
inflation is very unstable. None of the major central banks of the
world use money supply as the mechanism to control prices, but rather
short-term interest rates. They all target -more or less explicitly- a
core inflation rate of around 1.5-2 percent a year, and they increase
(lower) the rates if they feel that inflationary pressures -as
measured by indicators such as wage costs, producer price index,
etc..- are increasing (decreasing) .
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