This weeks report showed that M1 (containing currency, travelers checks, demand deposits, and other checkable deposits) contracted by -0.46% and M2 (containing M1, plus retail money market mutual funds, savings and small time deposits) increased by 0.09%. In a year over year analysis we see that both M1 and M2 are down from the previous period a year ago. Money supply is the total amount of money in the market at a specific time and if you look at M1 we continue to climb to new highs all the time (some pullbacks). M3 is a better measure of money supply and could be viewed below with the graph that is linked to shadowstats.com.
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