• 389 days Could Crypto Overtake Traditional Investment?
  • 394 days Americans Still Quitting Jobs At Record Pace
  • 396 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 399 days Is The Dollar Too Strong?
  • 399 days Big Tech Disappoints Investors on Earnings Calls
  • 400 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 402 days China Is Quietly Trying To Distance Itself From Russia
  • 402 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 406 days Crypto Investors Won Big In 2021
  • 406 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 407 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 409 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 410 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 413 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 414 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 414 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 416 days Are NFTs About To Take Over Gaming?
  • 417 days Europe’s Economy Is On The Brink As Putin’s War Escalates
  • 420 days What’s Causing Inflation In The United States?
  • 421 days Intel Joins Russian Exodus as Chip Shortage Digs In
The Problem With Modern Monetary Theory

The Problem With Modern Monetary Theory

Modern monetary theory has been…

What's Behind The Global EV Sales Slowdown?

What's Behind The Global EV Sales Slowdown?

An economic slowdown in many…

Is The Bull Market On Its Last Legs?

Is The Bull Market On Its Last Legs?

This aging bull market may…

  1. Home
  2. Markets
  3. Other

More on the Strange Pending Disappearance of M3 without even a Reasonable Fed Explanation


On November 14th, I wrote and posted on the Gillespie Research Associates Website a missive entitled, "Bye-Bye, M3, but Why?" In cursory fashion, the piece examined the Federal Reserve's announcement of November 10th that the Fed would cease publishing M3 and some of its more critical components as of March 23, 2006. Those reading the article know it conveyed a rather cynical tone.

My colleague, John Williams, has just authored a more detailed examination of the event; it carries a publication date of today. The article is highly insightful as well as provocative, and because of the importance of the topic, John has been kind enough to let me share it with a broad audience. An excerpt:

"Unilaterally and without reasonable explanation, the Federal Reserve Board has decided to stop reporting monetary aggregate M3, the broadest of the money-supply measures and probably the most important statistic published by the U.S. central bank. Of the liquidity measures, inflation-adjusted M3 is the best leading indicator of economic activity. Despite its strong growth in nominal terms, net of inflation (calculated on a pre-Clinton Era basis), M3 generated a reliable recession signal several months back.

"What game the Federal Reserve is playing will become clear soon enough. However, the chances that M3 is being eliminated because it merely duplicates M2 are nil. The cost factor the Fed cited in its announcement also is a canard."

Access this intriguing article at: http://www.gillespieresearch.com/cgi-bin/bgn/article/id=712

Back to homepage

Leave a comment

Leave a comment