An Introduction to Macro Watch


Economics In The Age Of Fiat Money

The nature of our economic system changed in 1968 when the United States stopped backing dollars with gold.

In the past, economic growth was driven by private sector investment and savings. Today, the government manages the economy at the Macro level using a variety of policy tools designed to force credit to expand. Credit growth now drives economic growth, while liquidity determines the direction of asset prices.

This website monitors and analyzes trends in credit growth, liquidity and government policy with the goal of anticipating economic developments and their impact on the financial markets in this new age of fiat money.

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