Is this model right?https://twitter.com/paraschopra/status/1352269703595646979 …
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Makes sense only if M2 money flows into market as bank loans. I'm not so sure about that.
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My understanding is when QE money enters the banks, it's not counted as M2 money until they are lent out. I could be wrong there but this whole business is damn confusing.
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But it flows in the economy. M2 is broadly representative of monetary base of the US economy and that is why Fed stopped publishing M3 data https://en.m.wikinews.org/wiki/US_Federal_Reserve_ceases_to_publish_M3_index …
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