Friday, October 31, 2014

Thursday's Child


Thursday's
graph shows the rate of base money growth (less the cost of growing it) in blue. And in red, the growth rate of Real GDP. I see similarity in the two lines, and I see differences that I can explain.

To that graph I added (in gray) the rate of base money growth with nothing subtracted from it.

Graph #1
I'd want to compare gray and red directly (without the interference of the blue) to say this with certainty, but looking at Graph #1 I don't see much similarity between gray and red. I don't see much similarity between base money growth (with nothing subtracted) and real GDP growth.

This graph only strengthens the visual similarity of Thursday's red and the blue.

// for completeness:

Just quickly, with the blue line removed:

Graph #2
Yeah, no, I don't think so. Maybe if we put inflation back into the red line?

Graph #3
It's your call.

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