Fruity

Doug Noland : The key to fruitful monetary analysis is to de-aggregate – to carefully examine individual monetary components (in the context of comprehensive Credit system analysis), endeavoring to decipher changes in lending patterns and financial flows – both at the margin. Is an expansion or contraction in an individual component signaling a change in the level of lending? If so, by whom and to what consequence - change in funding business investment, consumption or the asset markets? Or is a change in an individual component (or components) evidence of an adjustment in the marketplace "flow of finance"? And, again, to what consequence? If money market fund assets are contracting, is this primarily an indication of reduced Credit growth and declining investor liquidity, or is it instead associated with a shift in preference for other asset classes (changing perceptions are likely related to Credit developments elsewhere)? What are the ramifications?