Comments on: Our Not-So-Elastic Currency http://alephblog.com/2008/03/27/our-not-so-elastic-currency/ Helping Institutions and Ordinary People Invest Better by Focusing on Risk Control Sun, 12 Feb 2012 22:02:53 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Josh Sternhttp://alephblog.com/2008/03/27/our-not-so-elastic-currency/comment-page-1/#comment-17339 Josh Stern Fri, 28 Mar 2008 18:39:43 +0000 http://alephblog.com/?p=620#comment-17339 "That M2 and other broader monetary aggregates are rising aggressively stems from a willing ness of the banks to take on leverage at present. For banks that are healthy, funds are cheap; they can expand." Are you saying that you interpret this statistic to mean that banks, in the aggregate, are healthy? In other words, there are unhealthy ones but more are increasing lending than decreasing it, so one would expect health rather than disease in a banking aggregate index weighted by balance sheet size. Is that your view? “That M2 and other broader monetary aggregates are rising aggressively stems from a willing ness of the banks to take on leverage at present. For banks that are healthy, funds are cheap; they can expand.”

Are you saying that you interpret this statistic to mean that banks, in the aggregate, are healthy? In other words, there are unhealthy ones but more are increasing lending than decreasing it, so one would expect health rather than disease in a banking aggregate index weighted by balance sheet size. Is that your view?

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