Money Still Talks - Is Anyone Listening?

David Laidler

No 133, e-briefs from C.D. Howe Institute

Abstract: Monetary authorities should keep an eye on money growth in the economy to help stimulate and monitor the recovery. Money growth, meaning the pace of expansion in the quantity of money held by the public and readily accessible deposits at financial institutions, is proving prescient in the current situation. While skeptics of QE will be inclined to attribute the recent surge of US money growth and signs of recovery in its wake to coincidence, advocates will suggest that QE's first round in 2009 prevented a collapse of the money supply like the one that turned the initial downturn of 1929/30 into the Great Depression, and that its second round is now promoting recovery.

Keywords: Monetary Policy; quantitative easing (QE); Bank of Canada; interest rates (search for similar items in EconPapers)
JEL-codes: E42 E52 E58 (search for similar items in EconPapers)
Pages: 5 pages
Date: 2012-05
New Economics Papers: this item is included in nep-cba, nep-mac and nep-mon
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Published on the C.D. Howe Institute website, May 2012

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