Dollar Monetary Base Increases 8% in Past Two Weeks

According to the most recent H.3 release from the Federal Reserve, the monetary Base has increased 8% between September 10- September 24, 2008.  The year over year increase in the monetary base is about 11%, meaning that there has been considerable acceleration recently.

While this in itself would appear to be inflationary, the rate of deleveraging also appears to be increasing, meaning that credit may be being removed from the economy faster than the money supply is being  goosed.  Whether the net effect is currently inflationary or deflationary is accordingly unclear.