Most analysts today agree that using money as an indicator of future economic activity is extremely inaccurate.

Question

Quizplus · Accepted Answer

While there are varying opinions among analysts about the predictive power of money as an indicator of future economic activity, it is not accurate to say that most analysts agree it is extremely inaccurate. Many economists still consider monetary aggregates, such as M2, as important indicators for forecasting economic trends, although they also acknowledge the limitations and the need to consider a broad range of economic data.

Most Analysts Today Agree That Using Money as an Indicator