Sunday, August 21, 2011

A contraction!

My answer to Professor Taylor's exam question. The economy has dropped rank, overall, fewer transactions and greater transaction quants. So M2 spurts because all inventory levels spurt a bit. The sudden contraction causing inventory excess, the yield curve thus predicts lower inventory growth.

Why are we double dipping? Cause we are doing big stuff, really big stuff, from energy, transportation, education, government and hopefully, medicine. The world belongs to the web bots, and we underestimate information technology.

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