Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
You're likely referring to The M3 money supply: much ado about nothing? (October 7th, 2007) and your comment
The key issue here is that if you sit down with:

a) M1 and M2
b) Interest rate decisions

you will happily conclude that inflation has been low because inflationary pressures are low. This allows you to ignore the "asset bubble." Incidentally, this kind of round robin of measurements probably plays into the "core inflation" debate too.

It's only when you look at M3 that you get an explanation for the "asset bubble."

Repos show up in Cat's comment
Yes, according to Gary North and Mish. I finally got around to reading these posts, and I think you might find them interesting. You all are about to converge at the same conclusion: the real action has been in M2 and FRB repos, the ultimate buy-back scheme. Basically, the discount window has been and will remain a cover for sucking money out of circulation; supply has been flat, after all. (Graphs of YoY data sets)

The brainless should not be in banking -- Willem Buiter
by Carrie (migeru at eurotrib dot com) on Wed Mar 17th, 2010 at 01:27:16 PM EST
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