Like I said....the FED has ZERO control over the money supply

[Kimura]

For all of our delusional Monetarist and Austrian friends who claim that the FED is "printing money" and "debasing" our money supply....

Here we have a chart of the monetary base against M2. As you can see, if you take a closer look, the base (what the FED can directly control) has no correlation with M2.

 

[expat_panama]

...friends who l Monetclaim that the FED is "printing money" and "debasing" our money supply...

Never had any luck figuring out what they meant by that. I mean, there's no inflation, exchange rates are the same.

....the base (what the FED can directly control) has no correlation with M2...

We need to focus here. This is the Fed's mission:

• conducting the nation's monetary policy by influencing the monetary and credit conditions in the economy in pursuit of maximum employment, stable prices, and moderate long-term interest rates
• supervising and regulating banking institutions to ensure the safety and soundness of the nation's banking and financial system and to protect the credit rights of consumers
• maintaining the stability of the financial system and containing systemic risk that may arise in financial markets
• providing financial services to depository institutions, the U.S. government, and foreign official institutions, including playing a major role in operating the nation's payments system

"Money Supply" isn't there.

 

[Kimura]

I mean, there's no inflation, exchange rates are the same.

the Fed's mission:

• conducting the nation's monetary policy by influencing the monetary and credit conditions in the economy in pursuit of maximum employment, stable prices, and moderate long-term interest rates
• supervising and regulating banking institutions to ensure the safety and soundness of the nation's banking and financial system and to protect the credit rights of consumers
• maintaining the stability of the financial system and containing systemic risk that may arise in financial markets
• providing financial services to depository institutions, the U.S. government, and foreign official institutions, including playing a major role in operating the nation's payments system

"Money Supply" isn't there.

I like their mission to change. It should be full employment and price stability.

 

[Toro]

What's M3 done?

 

[percysunshine]

The guys who ran off balance sheet accounting at Enron went to jail.

The Fed will probably retire rich.

 

[Kimura]

What's M3 done?

The FED discontinued the publication of the M3 monetary aggregate back in 2006 if I'm not mistaken. M3 doesn't contain economic data which can't be extrapolated from M2. No FRED graphs for us.

 

[Toro]

What's M3 done?

The FED discontinued the publication of the M3 monetary aggregate back in 2006 if I'm not mistaken. M3 doesn't contain economic data which can't be extrapolated from M2. No FRED graphs for us.

Yeah, I know. I've seen graphs that recreated M3 that exploded thereafter, but I haven't seen one for a few years.

 

[expat_panama]

...pursuit of maximum employment, stable prices... ...Money Supply" isn't there.

I like their mission to change. It should be full employment and price stability.

--we agree that the Fed doesn't set the money supply, and we agree that it's doing its mission. Incidentally the only thing the fed can really do w/ employment is the help that stable prices provide, which is admittedly not much in the face of poor fiscal policy.

 

[JimmieD]

There are firms out there who still keep a measure of broader money supplies than M1 and M2. They will confirm what the op said.

Advances in Monetary and Financial Measurement (AMFM) - Divisia and Fisher-Ideal Monetary Aggregates - The Center for Financial Stability