DUCK AND COVER

**(PSSSSSTTTT Total credit mkt debt is now 350% of GDP!!!!!!!! it was 290% ay 1929 top)


http://research.stlouisfed.org/publications/usfd/page3.pdf “…..is designed to be a SINGLE MEASURE OFF ALL FEDERAL RESERVE ACTIONS…….


adjusted monetary base is designed to be a
single measure of all Federal Reserve actions, including
changes in reserve requirements, that influence the
money stock. It is equal to the source base plus a
reserve adjustment magnitude (RAM) that accounts for
changes in reserve requirements by the Fed

WTF is RAM YOU ASK????
THE CALCULATION OF RAM AND
THE ADJUSTED MONETARY BASE
RAM is calculated as the difference between the
reserves that would have been required (given current
deposit liabilities) if the base period’s reserve requirements
were in effect and the reserves that are actually
required given current requirements). Adding RAM to
the source base produces an adjusted monetary base
series that shows what the source base would have had
to be, given the deposit liabilities for’each period, if the
reserve requirement ratios had always been those of
the base period. Thus, this procedure converts reserve
requirement changes into equivalent changes in the
source

http://research.stlouisfed.org/publications/review/84/02/Monetary_Feb1984.pdf