Commentary: Rivers Of Cash Won't Swamp The Economy

Is the world awash in money? Certainly it looks that way. In the U.S., M2--a broad measure of the money supply that includes cash, checking accounts, and money-market accounts--is rising at an annual rate of 9%, up from 6% just a year earlier. The money-supply growth in both Britain and Europe has also accelerated sharply over the last year. And even Japan--one of the few countries where money growth has slowed--has recently cut a key interest rate to near zero, with the aim of stimulating money creation and economic growth.

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