Money Again Seen Making Economies Go Around for Central Bankers

Then policy makers switched to shifting interest rates and inflation targets came into favor, remaining so today even after being blamed in some quarters for enabling the recent financial crisis. Among the reasons money supply went out of fashion were doubts over what it signaled in terms of economic growth or inflation, a difficulty in tracking it at a time of financial innovation plus the suspicion that it was probably better to monitor credit. Now, economists at Standard Chartered Plc are suggesting it’s time to resurrect money as an indicator, focusing on one gauge named after the late French economist Francois Divisia. Rather ...READ MORE