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Showing posts with the label Financial Markets

Monetary Policy influencing commodities and finance, and damaging the economy.

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Who or what is driving these lines!? link to the working paper on Oil vs Gold vs S&P500 A hint: Monetary Policy. These evolution's, doubling and tripling the value in just 4 years, have no economic support and they are damaging the economy As you can see, concerning M2 Nominal Money Velocity vs Central bank Assets, since early 2006, the economic activity associated with M2, has decreased from 2 times units of goods and services per 1 unit of money (M2), to, 1,54 times units of good and services per 1 unit of money (M2). (Velocity of money measures the rate at which money changes hands) The speed and the amounts of which money is being printed, under the form of Quantitative Easing programs and other new means / operations, has no parallel in recent central bank history, as you can see here in this graph with information about the USA M2 Money velocity Historically, Monetary Aggregates haven't grown in this way... this is getting out of con...

About Myths - Monetary vs Finance vs Economy

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The image and the data concerning the working papers presented in this post, were presented initially in our Webpage, here " Economics the Power of Numbers ". Concerning the Economic Data and the Monetary Policy, this presentation will concentrate the analyse in the years from 1990 to 2012. The Myth - Flooding the financial markets with money, will have, eventually, a direct impact or at least a substantial impact in the Real Economy, creating and promoting the conditions for countries to grow. The Following graphic presents the most important sets of monetary aggregates and their evolution since 1990 to 2012 Another view at the same set of data, for better understanding ... Notes: Data from China is presented divided by "3" and Japan divided by "100", in order to make visible the complete sets of data from the other aggregates. The objective is to present the trends and the evolution of the aggregates in percentage from 199...