The Weekly Money Supply Report was released Thursday afternoon and the M1 decceleration seems to have ended with M1 still growing at double digit rates. M1 is growing at 18.23% Y/Y and 20.54% M/M Annualized.
Some of the M1 growth is a substitution into Demand Deposits which now can earn interest and away from CD's and Money Market Mutual funds which are a part of M2, but one cannot deny that there is plenty of money sloshing around in the system.
Some of the M1 growth is a substitution into Demand Deposits which now can earn interest and away from CD's and Money Market Mutual funds which are a part of M2, but one cannot deny that there is plenty of money sloshing around in the system.
M2 money supply growth has been slower than M1 growth, but has still been above Nominal GDP growth as M2 growth has been 9.21% Y/Y and 5.59% M/M Annualized.
I pay attention to Money Supply Growth because recessions have usually been preceded by a severe slowdown in M2 growth. Prior to the last recession, M1 growth was around zero for years and finally a Credit Crunch developed into a deep recession.
Check out our weekly Money Supply package that I posted today for more information.
I pay attention to Money Supply Growth because recessions have usually been preceded by a severe slowdown in M2 growth. Prior to the last recession, M1 growth was around zero for years and finally a Credit Crunch developed into a deep recession.
Check out our weekly Money Supply package that I posted today for more information.
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