The annual growth rate of our measure of the broadest M3 monetary aggregate hit a three-and-a-half-year high of 6.4% in December, with the growth rates of the narrower M1 and M2 aggregates also accelerating. (See Chart below.) With the Fed doubling the pace of its quantitative easing to $85bn per month, money growth is likely to remain at these robust rates for at least the first half of this year.
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