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Why investors should not be worried about the expansion of the money supply causing inflation in four easy charts.
@resjudicata Not very helpful, mind explaining Why? -
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Why investors should not be worried about the expansion of the money supply causing inflation in four easy charts.
@curiousspring Not exactly, what includes bank reserves is what's called the monetary base or the base money supply. M1 money supply is physical currency, demand deposits and other checkable accounts. M2 is basically M1 plus savings deposits, the reason M1 and M2 increased so drastically in 08... -
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Why investors should not be worried about the expansion of the money supply causing inflation in four easy charts.
@madikana Eh not exactly, here is a copy paste from another comment I made to sorta explain the increases to the money supply. M1 is basically physical cash and demand deposits plus other checkable accounts. M2 is basically M1 plus savings deposits, the reason M1 and M2 increased so drastically... -
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Why investors should not be worried about the expansion of the money supply causing inflation in four easy charts.
@vnct0000 Sound counter intuitive, but it is true here are some sources to look into this further https://fred.stlouisfed.org/series/TOTRESNS https://www.bloomberg.com/news/articles/2021-02-08/biggest-u-s-banks-keep-lending-less-and-less-of-their-money... -
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Why investors should not be worried about the expansion of the money supply causing inflation in four easy charts.
@curiousspring While this is all true its important to explain why because it makes sense intuitively that more money in the economy equals inflation, but the truth that the newly created money isn't in the economy its in the banking system in the form bank reserves. When the fed does QE the...