According to Bernanke s academic philosophy, expanding the money supply somehow equates to growing the economy.
The Fed has been able to do this through the manipulation of the money supply.
Of course, putting people in charge of the money supply can create undesired consequences.
Although the Federal Reserve dramatically increased liquidity, the money supply in the banking system barely budged.
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We need gradual growth in the balance sheet to support gradual growth in the money supply.
He criticized the Federal Reserve's decision to tighten the money supply early in the cycle.
The Fed controls the money supply and it is foolish to go against its actions.
Should the money supply increase, we would expect the price of gold to move up.
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Since the inception of QE II, the money supply has grown at a 12.5% annual clip.
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Without those QE II asset purchases, we estimate that the money supply would have gone nowhere.
FORBES: Monetary Watch June 2011, Inflation prospects post QE II
Once they finally step away from expanding the money supply, deflation rapidly takes hold.
Yet tight controls on the money supply have kept inflationary pressure lower than feared.
That is, as the money supply dries up, people start to create their own money.
Now the Fed is considering trying to pull down interest rates without increasing the money supply.
They will go for lowering interest rates if the policy does not increase the money supply.
The Federal Reserve then greatly exacerbated the great depression by decreasing the money supply.
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The money multiplier the ratio of the money supply to bank reserves has remained close to one.
Like it or not, the Fed controls the money supply and the IRS collects taxes.
Such sales will decrease the money supply, the first shoe to the inflation equation.
Yet many people treat the monetary base as a measure of the money supply.
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With no more goods to buy, inflation resulted (in precise proportion to the money supply increase).
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Central banks have mostly given up trying to target inflation via the money supply.
Likewise, unless agents in the economy desire an increase in the money supply, it cannot occur.
FORBES: The Real Impact of Quantitative Easing (Next to Nothing!)
It is a common misconception that increasing the money supply causes prices to rise.
FORBES: The Real Impact of Quantitative Easing (Next to Nothing!)
That graph: if the money supply is shrinking then the economy is going to follow.
However you controlled the money supply, he said, you could not end cycles of inflation.
Rising foreign-exchange reserves boost the money supply, causing higher inflation and excessive bank lending.
The money supply grew by 0.8% in August after expanding by 1% in July.
The money supply has been rising by more than 40% a year since 1999.
The money supply grew rapidly as the Fed printed bucket-loads of extra dollars, just in case.
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