Money Supply

During April 2022, year-over-year money supply growth was at 7.23 percent. That's down from March's rate of 7.41 percent and April 2021's rate of 36.8 percent.

Paul Krugman recently wrote that the reason we see high inflation is that people mistakenly believe inflation is in our future and act accordingly. This reasoning is false.

The usual "experts" claim inflation is a general increase in the price level. Wrong. Prices rise because of inflation, which is a government-caused increase in the amount of money in circulation.

Paul Krugman recently wrote that the reason we see high inflation is that people mistakenly believe inflation is in our future and act accordingly. This reasoning is false.

Even with November's small rise, money supply growth is far below the unprecedented highs experienced during the past two years. This points to a weakening economy.

During August 2021, year-over-year (YOY) growth in the money supply was at 8.2 percent. That's down from July's rate of 8.9 percent, and down from the August 2020 rate of 37.5 percent. 

Abstract: This article reviews the analytical justification, the theoretical content, and the practical experience of inflation ta

Presented at Mises University 2021.

During May 2021, year-over-year (YOY) growth in the money supply was at 15.3 percent. That's down from April's rate of 23.1 percent, and down from the May 2020 rate of 29.5 percent. 

During March 2021, year-over-year (YOY) growth in the money supply was at 34.1 percent. That's down slightly from February's rate of 39.1 percent, and up from the March 2020 rate of 11.3 percent.