Next: Monetary Policy vs. Long Term Business Cycles
julio 24, 2012 § Deja un comentario
U.S. Recession: Check
Now that we are closer to our new and very anticipated Q3, the next question is:
Can monetary policy override the medium/long-term business cycles?
I honestly don’t know the answer and I doubt that a couple of graphics can share some light. But if monetary policy can take over business cycles, why have we had recessions in the past?
US Corporate Profits (histogram) / Money Supply M2 (blue line)
US Manufacture & Trade Inventories (histogram) / Money Supply M2 (blue line)