[Always Right]

It very obviously does not have a constant growth rate.

Yes it does. You would just take the average rate of growth of the money supply, plug that into the equation above and you would have a curve that closely approximates the curve above. Obviously the money supply growth probably varies from about 4-6% per year, but there is a best fit exponential curve that would map the data very well.

[AdamSelene235]

Obviously the money supply growth probably varies from about 4-6% per year

Hardly

Jan 2000 - Jan 2001 9.557% Growth

Jan 2001 - Jan 2002 11.404% Growth

Jan 2002 - Jan 2003 6.529% Growth

Jan 2003 Jan 2004 4.130% Growth

For the last 10 years the average m3 growth rate is 7.9% with a peak growth rate of 13 % from 11/00 - 11/01 and a min growth rate of 3.6% from 12/02 - 12/03.

A simple exponential function does not match the data.

[AdamSelene235]

Obviously the money supply growth probably varies from about 4-6% per year, .

Actually, you ended up using a money supply growth rate of around 8%. Gee, isn't that a bit higher than our average GDP growth rate?

but there is a best fit exponential curve that would map the data very well

There is also a Fourier series of sine waves that will fit it a hell of alot better or a polynomial that will at least capture the roll over in the 1990's.

And this tells us what exactly?