Here is Barnett:
“Regarding the insightful commentaries that just appeared on the three blogs, The Money Illusion, The Market Monetarist, and Monetary Freedom, I just posted the following reply on the Monetary Freedom blog.
All very interesting. The relevant theory is in the appendixes to my new book, Getting It Wrong. The source of the new Divisia data is the program I now direct at the Center for Financial Stability in NY City. The program is called Advances in Monetary and Financial Measurement (AMFM).
AMFM will include a Reports section discussing monetary conditions. Although not yet online, that section will address many of the concerns rightfully appearing in the excellent blogs, The Money Illusion, The Market Monetarist, and Monetary Freedom. The distinction between the AMFM Reports section and the AMFM Library, which is already online, is that the AMFM Library only relates to articles published in peer-reviewed journals and books, while the AMFM Reports section will relate to the public media and online blogs.
There will be a press release when the full AMFM site is ready to go online.”
I certainly hope to be able to follow up on William’s work in the future. I am particularly interested in the reasons for the sharp drop in Divisia M3 and Divisia M4 in 2008/09. The numbers surely confirms that monetary policy has dramatically tightened in 2008 – as Market Monetarists long has argued – most notable Scott Sumner and Bob Hetzel.