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THE FINANCIAL PRESS HAS JAPAN ALL WRONG. The common narrative that low interest rates mean loose monetary policy is incorrect. Japan’s money supply (M2) is growing at an anemic 2.2%/yr. That is the result of a very tight monetary policy. See my latest with Hedgeye CEO Keith McCullough:

Steve Hanke

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26,386 views • 21 days ago •via X (Twitter)

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JAPAN'S TIGHT MONETARY POLICY IS TANKING THE YEN. Tight monetary policy = a low rate of growth in the money supply. A low rate of money supply growth (M2 = 2.2%/yr) puts a ceiling on nominal GDP growth (real growth + inflation). My latest with Hedgeye CEO Keith McCullough:

JAPAN'S TIGHT MONETARY POLICY IS TANKING THE YEN. Tight monetary policy = a low rate of growth in the money supply. A low rate of money supply growth (M2 = 2.2%/yr) puts a ceiling on nominal GDP growth (real growth + inflation). My latest with Hedgeye CEO Keith McCullough:

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I spoke with David Lin about the FED'S MONETARY POLICY MISMANAGEMENT: "The Fed thinks interest rates set the tone for monetary policy. WRONG. Changed in the MONEY SUPPLY set the tone. Surging money supply growth is why the inflation genie in the US is OUT OF THE BOTTLE."

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