(Solved) : Money Supply Financial Measures Compound Annual Growth Rates Growth Various Measures Money Q32645718 . . . .

MONEY SUPPLY AND FINANCIAL MEASURES COMPOUND ANNUALGROWTH RATES

            Thegrowth of various measures of money supply have frequently beenused to indicate future expected inflationary trends in theeconomy.  Similarly, it has been suspected that easymoney has been good for growth in stock markets.  TheFederal Reserve (Fed) sets targets for growth in money (previouslyM1-M3, now primarily M2) and both preliminary weekly and monthlyresults are studied by analysts and forecasters. Weekly or monthlygrowth rates may vary, but the Fed tries to adjust as needed, andthe annual rates are usually close to targets. Historically, thestock market indices are not targeted, but Former Federal ReserveChairman Greenspan has indicated that