{"id":54241,"date":"2020-07-18T06:53:17","date_gmt":"2020-07-18T11:53:17","guid":{"rendered":"https:\/\/olduvai.ca\/?p=54241"},"modified":"2020-07-18T06:53:19","modified_gmt":"2020-07-18T11:53:19","slug":"money-supply-growth-in-may-again-surges-to-an-all-time-high","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=54241","title":{"rendered":"Money Supply Growth in May Again Surges to an All-Time High"},"content":{"rendered":"\n<h3 class=\"wp-block-heading\"><a href=\"https:\/\/www.cobdencentre.org\/2020\/07\/money-supply-growth-in-may-again-surges-to-an-all-time-high\/\">MONEY SUPPLY GROWTH IN MAY AGAIN SURGES TO AN ALL-TIME HIGH<\/a><\/h3>\n\n\n\n<p>Money supply growth surged to another all-time high in May, following April\u2019s all-time high that came in the wake of unprecedented quantitative easing, central bank asset purchases, and various stimulus packages.<\/p>\n\n\n\n<p>The growth rate has never been higher, with the 1970s the only period that comes close. It was expected that money supply growth would surge in recent months. This usually happens in the wake of the early months of a recession or financial crisis. The magnitude of the growth rate, however, was unexpected.<\/p>\n\n\n\n<p>During May 2020, year-over-year (YOY) growth in the money supply was at 29.8&nbsp;percent. That\u2019s up from April\u2019s rate of 21.3 percent, and up from May 2019\u2019s rate of 2.15 percent. Historically, this is a very large surge in growth both month over month and year over year. It is also quite a reversal from the trend that only just ended in August of last year, when growth rates were nearly bottoming out around 2 percent. In August, the growth rate hit a 120-month low, falling to the lowest growth rates we\u2019d seen since 2007.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><a href=\"https:\/\/mises.org\/files\/tms1png-21\">tms1.png<\/a><\/h2>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"http:\/\/www.cobdencentre.org\/wp-content\/uploads\/2020\/07\/tms1_11.png\" alt=\"tms\"\/><\/figure>\n\n\n\n<p>The money supply metric used here\u2014<a href=\"https:\/\/mises.org\/library\/austrian-definitions-supply-money\">the \u201ctrue\u201d or Rothbard-Salerno money supply measure (TMS)<\/a>\u2014is the metric developed by Murray Rothbard and Joseph Salerno, and is designed to provide a better measure of money supply fluctuations than M2. The Mises Institute now offers&nbsp;<a href=\"https:\/\/mises.org\/austrian-school\/money-supply\">regular updates<\/a>&nbsp;on this metric and its growth. This measure of the money supply differs from M2 in that it includes Treasury deposits at the Fed (and excludes short-time deposits, traveler\u2019s checks, and retail money funds).<\/p>\n\n\n\n<p>\u2026click on the above link to read the rest of the article\u2026<\/p>\n","protected":false},"excerpt":{"rendered":"<p>MONEY SUPPLY GROWTH IN MAY AGAIN SURGES TO AN ALL-TIME HIGH Money supply growth surged to another all-time high in May, following April\u2019s all-time high that came in the wake of unprecedented quantitative easing, central bank asset purchases, and various stimulus packages. The growth rate has never been higher, with the 1970s the only period [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[7380,175,195,426,954,13127,855],"class_list":["post-54241","post","type-post","status-publish","format-standard","hentry","category-economics","tag-cobden-centre","tag-credit","tag-debt","tag-inflation","tag-money-supply","tag-stimulus-spending","tag-viral-pandemic"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/54241","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=54241"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/54241\/revisions"}],"predecessor-version":[{"id":54242,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/54241\/revisions\/54242"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=54241"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=54241"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=54241"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}