Money Supply

The velocity of money doesn’t have a life of its own. It is not an independent entity and, hence, it can’t cause anything. Contrary to popular thinking, money does not circulate. Money always belongs to somebody.

In spite of repeated claims from the Federal Reserve that monetary policy is at least moderately restrictive, there is no sign of any slowing in money-supply growth.

In spite of repeated claims from the Federal Reserve that monetary policy is at least moderately restrictive, there is no sign of any slowing in money-supply growth.

In February, the total money supply again rose, heading above $20.4 and growing by a trillion dollars in seven months from July 2025 to February 2026.

As the Federal Reserve has delayed lowering the federal funds rate, the money supply has stabilized in recent months. This trend also reflects rising delinquencies, falling home sales, and stagnating employment.

How much money does an economy need in circulation to function? Austrians believe that a growing economy does not need a growing supply of money, which sets Austrian economics apart from other schools of economic thought.

In February, the money-supply growth rate accelerated and continued near a two-year high. Meanwhile, the Fed is chickening out in its efforts to shrink the Fed‘s balance sheet.

Jonathan Newman joins Bob to explore the archaeological evidence for silver as money in ancient Mesopotamia, challenging Modern Monetary Theory and affirming Menger’s classic account of money’s market origins.

Is Elon Musk’s DOGE taxpayer dividend proposal inflationary, or is it simply returning savings from government spending cuts?

Both Monetarists and Keynesians believe that a growing economy requires a growing money supply, thus, the Federal Reserve‘s “target” inflation rate of two percent. Austrian economists, however, understand that inflation at any level creates economic damage.