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Article: Fed board governor seeks reasons to explain weak money supply. (Lawrence Lindsey)
- Article from:
- The Bond Buyer
- Article date:
- June 3, 1992
- Author:
CopyrightCOPYRIGHT 1992 SourceMedia, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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WASHINGTON -- Ongoing weakness in the money supply may be the result of far-reaching changes in the banking system rather than a weak economy, according to Federal Reserve Board Governor Lawrence Lindsey.
"The money numbers are certainly weaker than expected," Mr. Lindsey said. "The question is why. It may turn out that we have had a structural change [in the relationship] between money and the economy."
"We're going to have to stay tuned," he added.
Mr. Lindsey said the rush by investors from bank certificates of deposit to higher-yielding stock and bond funds is one change that helps explain the sluggishness in the money supply.
He ...