The Fed's published monetary data (M1, M2) are scientifically meaningless because they simply add together dollar-for-dollar accounts that should be weighted differently—especially once banks pay interest on deposits—analogous to how the CPI weights components rather than averaging prices equally; a proper monetary aggregate would weight components by expenditure shares on monetary services.

factualpending

Speaker

Michael Belongia

Evidence Quote

They are publishing data on money none of which is scientifically valid it's all meaningless

Source

Michael Belongia on the Fed 01/11/2010EconTalk
Created: 6/15/2026, 9:37:51 AM

My Notes

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