Money-Supply Growth Has Stabilized as Stealth Liquidity Keeps Bubbles on Life Support

Source: Ludwig von Mises Institute
by Ryan McMaken

“Money supply growth fell again in December, remaining deep in negative territory after turning negative in November 2022 for the first time in twenty-eight years. December’s drop continues a steep downward trend from the unprecedented highs experienced during much of the past two years. Since April 2021, money supply growth has slowed quickly, and since late 2022, we’ve been seeing the money supply repeatedly contract, year over year. The last time the year-over-year (YOY) change in the money supply slipped into negative territory was in November 1994. At that time, negative growth continued for fifteen months, finally turning positive again in January 1996.” (02/06/24)