Just What Exactly Do You Mean by “Money,” Buster? #23
I was poking around at the very interesting Divisia measures of money, and came up with the following chart.
Update: Spreadsheet error in original graph. Result: this has little to impart. Never mind. Thanks to Mark Sadowski for pointing it out.
Which has me, once again, asking monetarists the question in the title of this post. For instance: are Treasuries money? How moneyish are they? We have two presumably valid measures here telling wildly different stories in MV=PY World. What’s your story?
The numbers in this chart are purely arbitrary (Divisia measures are just indexes, here divided into GDP, which is in dollars); it’s about the relative changes.
Cross-posted at Asymptosis.
The graph of “M4 w/ treasuries” is clearly the velocity of Divisia M4, which has a T-bill component.
What does the graph of “m4 w/o treasuries” refer to?
It’s obviously not the velocity of Divisa M4-, which is Divisia M4 without a T-bill component. I take it that it is something you have come up with on your own?
@Mark: Spreadsheet error. (Hey I’m in good company, especially given that I threw this together in ten minutes and didn’t publish in a professional journal!) Thanks for pointing it out.
OK, now I’m a lot less confused.
But in what way are these measures telling “wildly different” stories?
Mark: “in what way are these measures telling “wildly different” stories?”
They’re not. That’s why I say in the update that the graph has “little import.” (To the point I was trying to make.)
Roseanne Roseannadanna: “Never mind!”