tag:blogger.com,1999:blog-5713178645208582139.post7231398917452439403..comments2024-03-22T02:37:15.030-05:00Comments on Macro Musings Blog: Institutional Money Asset Growth Remains Weak and It Matters David Beckworthhttp://www.blogger.com/profile/04577612979801459194noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-5713178645208582139.post-8991885500944422042014-12-11T22:21:08.674-06:002014-12-11T22:21:08.674-06:00That graph would look really different if the 2003...That graph would look really different if the 2003-06 spike did not influence the regression. The 03-06 spike was an artificial increase in the supply of AAA assets. Looking at the trend before securitization really took form, the current level of market finance is not too far off.<br /><br />There are also many questions not answered in the PDF. Let's say "money" only takes the Matt Watersnoreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-14769063161982740542014-12-10T10:08:10.884-06:002014-12-10T10:08:10.884-06:00Kevin, the figure is actually not mine, but comes ...Kevin, the figure is actually not mine, but comes from the Goodman research note. Yes, an exponential trend probably makes more sense here. I do think, though, that the 2003-2007 spike would still be noticeably different than a non-linear trend. Alas, I don't have the data to check.David Beckworthhttps://www.blogger.com/profile/04577612979801459194noreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-19591192919759281892014-12-10T09:51:38.383-06:002014-12-10T09:51:38.383-06:00Why did you use a linear trend? It looks to me li...Why did you use a linear trend? It looks to me like with an exponential trend, the 2007 levels wouldn't have been that far out of trend.Kevin Erdmannhttps://www.blogger.com/profile/07431566729667544886noreply@blogger.com