Fed Wants To "De-Emphasize The Role of M3"

Tuesday, November 15, 2005

In all the buzz about M3 I overlooked that Barry Ritholtz succeeded in getting an answer from the Fed. From The Big Picture:
According to a Fed spokesman, the Federal Reserve Board of Governors wants to "de-emphasize the role of M3." Academically, they add, this measure of money supply receives less attention than M1 and M2 do. A Fed spokesman also suggested that M3 is "no longer closely tracked by policymakers."
So we learn the following. If things become worrisome, just de-emphasize them. Inflation gets de-emphasized by hedonic adjustments, deficits get de-emphasized by the projections of a better future. Reports about torture camps get de-emphasized by considerations whether the media is permitted to report on them. The original reasons for the Iraq war get de-emphasized with a note that only "total victory" of the US army will liberate the Iraqi people.
Where should I turn to for help to de-emphasize my outrage?


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