Fred Krueger: M3 is the true measure of money supply
@dotkrueger: Krueger on M3 money supply
Fred Krueger, a financial analyst, highlights the complexities of measuring the money supply by distinguishing between M2 and M3.
In his recent tweet, Krueger explains that the money supply is often referred to as M2, which includes the combination of M0 and M1, covering cash and bank deposits. However, he argues that a broader measure, M3, provides a more accurate representation as it also encompasses institutional Money Market funds and repos, indicating a more comprehensive view of the overall money supply.
Krueger's remarks come as financial markets and central banks closely monitor monetary aggregates to assess economic stability and inflationary pressures.
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Krueger’s nuanced perspective on monetary aggregates aligns with his longstanding skepticism toward speculative assets, as reflected in his recent assessment of cryptocurrency valuations as potentially zero or infinite. His commentary also follows prior observations on the notably low allocation to Bitcoin among crypto fund managers, underscoring his broader concerns about asset selection and financial system transparency.
In the previous news, tweet author Fred Krueger discussed the potential risks of monetary policies.
