Adjusted Monetary Base, September 2, 2010: Long Term and Short term

Gary North

Sept. 6, 2010

First, the long-term increase.

We see an unprecedented increase straight up. Then there was a slight revesal. This increase was offset by an increase in commercial banks' excess reserves.

Next, over the last year.

We see an increase in February, then a reversal. It has been flat for six months.

The fact that the consumer price index has gone almost flat has to do with this flattening of the AMB this year.

http://www.clevelandfed.org/research/data/us-inflation/mcpi.cfm