The Money Supply: It Could Rain On The Recovery's Parade

Heartened by signs of strengthening economic activity, many economists are suggesting that growth could surge rather sharply in the months ahead. Those who keep a weather eye on the U. S. money supply, however, are less optimistic. "The problem," says economist Lacy H. Hunt of the HongkongBank group, "is that the pickup is occurring in an environment of extremely minimal monetary growth. Without more monetary fuel, the recovery is in danger of stalling out."

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