So I'm still learning more and more about the Austrian School, but I have a question that I don't necessarily know how to find out for myself. A while back I read or heard somewhere, where Milton Friedman said that the money supply should be increased I believe it was 6% each year or something like that. My question is, how can I find out how much percentage wise is the US Dollar inflated each year and what was the percentage it was inflated in 2007? And is there some type of term they use to refer to this percentage of yearly inflation?
Thank you in advance,
Eric
m0,m1,m2,and m3 are the numbers you want. m3 is the total supply of money in the US. The others are subsets of the total. Unfortunately after BB became the Federal reserve chairman the federal government quit reporting M3. They said it was too expensive to compile the data; of course it's not too comforting if the government doesn't actually know how much money is in circulation. Alternately we could assert they quit reporting the data to hide inflation.
Someone compiled their best-guess estimate of current M3 using historical data (i'll see if i can find that graph for you). If I remember correctly it shows the money supply growing at 16~18% per anum.
*wanders off to find chart*
numbers directly from the fed:
http://www.federalreserve.gov/releases/h6/hist/h6hista.htm
By my math M3 grew approx. 7.8% from jan 05 to jan 06. They stopped reporting the M3 in mar 06.
Woot, get to pimp my pretty google chart again...
Year over year (or whatever that's called) percentage increases in the money supply -- data from the St. Louis Fed.
The red line is one to be interested in, I did this to see how the bank's sweeps programs affect the Austrian Money Supply.
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