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A comment on US economy returned to growth last quarter, expanding 2.6%. Parent comment

Re:US economy returned to growth last quarter, expanding 2.6% by JumpCrisscross on Thursday October 27, 2022 @12:19PM (#33359877)
> adjust for money supply inflation (spiked at around 24%) instead of price inflation (spiked at around 9%)

The former is a fake metric. Measuring changes in the monetary base [1] is a thing. But it’s seldom accurately reflected in a single figure.

Also, the 2.6% is real GDP growth. Current-dollar growth was 6.7% annualised [1].

[1] https://en.wikipedia.org/wiki/Monetary_base

[2] https://www.bea.gov/news/2022/gross-domestic-product-third-q...

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Re:US economy returned to growth last quarter, expanding 2.6% by hartator on Thursday October 27, 2022 @12:22PM (#33359919)
> the former is a fake metric.

I am using M2 money supply. Basically trying to proxy how much money more we printed this past few years.

Source: https://www.longtermtrends.net/m2-money-supply-vs-inflation/

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Re:US economy returned to growth last quarter, expanding 2.6% by JumpCrisscross on Thursday October 27, 2022 @12:30PM (#33360067)
> am using M2 money supply

It makes no sense to use a November 2020 rate of change in M2 to adjust a Q3 2022 real GDP estimate. GDP is a production metric. An output of the real economy. M2 is a monetary metric. An input into the financial system. To the degree their relationship has meaning, it’s as a rough measure of financialisation [1].

[1] https://data.worldbank.org/indicator/FM.LBL.BMNY.GD.ZS?most_...

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Re:US economy returned to growth last quarter, expanding 2.6% by nightski on Thursday October 27, 2022 @12:27PM (#33360022)
That could be skewed because they changed how M2 was calculated during the pandemic.
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Re:US economy returned to growth last quarter, expanding 2.6% by giantg2 on Thursday October 27, 2022 @12:47PM (#33360335)
This makes me feel better.

/s

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Re:US economy returned to growth last quarter, expanding 2.6% by cko on Thursday October 27, 2022 @04:15PM (#33363419)
It should.

https://collabfund.com/blog/the-fed-isnt-printing-as-much-mo...

Also money printing isn't necessarily inflationary if the money stays as bank reserves. Unless... The Fed buys treasuries and the government dumps the money on the economy.

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Re:US economy returned to growth last quarter, expanding 2.6% by giantg2 on Thursday October 27, 2022 @05:02PM (#33363989)
It just obfuscated things. It might not be a 350% increase, but it's still a 70% increase, right?
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Re:US economy returned to growth last quarter, expanding 2.6% by roflyear on Thursday October 27, 2022 @12:45PM (#33360314)
Why does that matter?
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