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True Money Supply (TMS) was roughly unchanged during the one-week period ending 29th September (the latest week for which broad money supply info is available), as was M2. This surprised us given that the Fed aggressively expanded reserve bank credit over the same period. It probably means that it will be another week or two before the broader money supply measures reflect the dramatic money pumping carried out by the Fed during the final week of September, but a less likely alternative is that the steps being taken by the Fed will give a hefty boost to bank reserves while not having much effect on the total amount of money in the economy.
If the additional money provided by the Fed to financial corporations under various new funding facilities does not eventually make its way into the real economy then the new money won't affect prices. This is one of the arguments currently being made by the deflation forecasters. In Japan during the 1990s, for example, the central bank seemed incapable of promoting much monetary inflation
certamente una certa calma nel mercato overnight è necessaria per poter calmare in maniera un po piu consistente il mercato... e le ultime mosse delle autorità sembrano indirizzate in questo campo...