http://digg.com/d1PWSl
MZM Money Supply on Dec. 31
$4.697 trillion
$8.105 trillion
+72.6
the above link says that mzm has increased almost 73% since the year 2000.
an economagic.com chart states that m2 has increased about 64 percent since the same time.
as for the money components outside of these two measure - i am not sure about.
the link to the the link above was worded this way "From 2000 to 2007 the Fed has inflated the money supply 73%"
http://digg.com/politics/From_2000_to_2007_the_Fed_has_inflated_the_money_supply_73
i dont know if these items are true. perhaps someone else can confirm this information.
if true....how exactly did the fed "inflate the money supply by 73%"?
i have been told by posters here that the federal reserve creates money before it purchases some type of commercial bank (usually paper) assets (in order to affect the federal funds rate). this created money is exchanged with a commercial bank (often making its way into the reserve account at the federal reserve?)
are these paper assets basically bonds and loans that are "retired" in a sense after a period of time- thus 'removing' the money that was created to purchase these items? is this not the case?
i have read that the fed mechanisms outside of manipulating the Federal Funds rate are small time contributors to the overall money creation levels at the federal reserve? true?
also i have seen charts of the Federal Funds rate and it seems to fluctuate(increasing buy selling assets?, decreasing by purchasing)...yet money supply continually increases? m2 since 1977 increased about 600 percent. how so?
this process is still unclear to me.
clarification appreciated