M2 Money Supply Shrinking vs Inflation | Money Velocity Irrelevant?
Broken Pie Chart · Broken Pie Chart
Audio is streamed directly from the publisher (traffic.libsyn.com) as published in their RSS feed. Play Podcasts does not host this file. Rights-holders can request removal through the copyright & takedown page.
Show Notes
Last week CNBC had some talk about 2022 likely to have the first ever decline in the M2 Money Supply. Is that really a big deal given 2020 record 25% growth followed by 2021 12% growth? Then, why velocity of money may not mean anything for inflation after all.
What is the M2 money supply?
What is the M1 money supply?
Comparing M2 vs M1 money supply
Discussing massive increase in money supply in 2020-2021
First ever decline in money supply in 2022?
Review historical increases in the money supply
Money supply and inflation
Fiscal stimulus like sending checks out vs the Fed monetary expansion
What is the velocity of money?
How is velocity of money calculated?
Is velocity and inflation correlated?
Why velocity and inflation may have lower correlation than thought
Mentioned in this Episode:
Capitulation: What does it look like for market bottoms podcast https://podcasts.apple.com/us/podcast/capitulation-markets-tend-to-lead-the-economy/id1432836154?i=1000585228050
Academic paper showing low correlation between velocity and inflation: The Behavior of Money Velocity in High and Low Inflation Countries
Hugo Rodríguez Mendizábal https://www.jstor.org/stable/3839075
Crypto Crash | US Dollar is the thing to watch podcast https://podcasts.apple.com/us/podcast/crypto-crash-us-dollar-is-the-thing-to-watch/id1432836154?i=1000586009794
Derek Moore's book Broken Pie Chart https://www.amazon.com/Broken-Pie-Chart-Investment-Portfolio/dp/1787435547/ref=sr_1_1?keywords=broken+pie+chart&qid=1558722226&s=books&sr=1-1-catcorr
Contact Derek [email protected]