Despite the prevailing notion that the Fed has implemented “tight” monetary policy, the money supply has expanded ...

The chart below shows the 5-year annual % change of the U.S. dollar on a trade-weighted basis versus the money supply. Today’s dollar has roughly the same value as in 1980, and the money supply ...

Reviewed by Robert C. Kelly The money supply of a country is a major contributor to whether inflation occurs. As a government evaluates economic conditions, price stability goals, and public ...

And money supply can be a tool to steer the economy. Tedeschi said back in the 1970s and early 1980s, the Fed controlled the money supply before shifting to target inflation more directly.

The money supply is generally considered to be a good barometer for the overall economy, reflecting the movement of variables like the gross domestic product (GDP), inflation, and price level.

The U.S. M2 money supply reached a record $21.94 trillion in May, surpassing its previous high from March 2022. Money supply ...

As prices rise, the same amount of money buys less than it did before. This erosion of purchasing power can be particularly challenging for individuals on fixed incomes or those with substantial ...

Inflation has pulled back significantly from its pandemic-era peak of 9.1% in June 2022. However, there are still some trouble spots. Auto insurance prices, for example, are up 14% since October ...

Prices rose 2.6% between October 2023 and the same month in 2024, an unremarkable figure. Yet, inflation seems to be on everyone’s minds.

The author examines the money supply represented by M2, the Federal budget deficit, the Fed’s previous adventures with QE, and the correlation to inflation. Click to read.