Published March 10, 2023
Though interest rates get all the headlines, changes in the supply of money can have substantial impacts on the economy and asset prices. Below is Delta’s analysis of changes in the supply of money and how that might impact inflation.
“The January money supply declined by 1.7% versus a year ago. Money supply (M2) is a measure of money including coins, currency, check and savings deposits, travelers checks and money market deposit accounts. This is both the biggest yearly decline and the first time ever it has contracted in consecutive months. The monthly rate of change has been falling consistently since mid-2021 when it peaked at a 27% growth rate. (more…)