During May 2022, year-over-year (YOY) growth in the money supply was at 6.97 percent. That's down from April's rate of 7.25 percent, and down from May 2021's rate of 15.4 percent. The growth rate peaked in February 2021 at 23.12 percent.
A common error in economics is to label increases price increases inflation. Inflation actually is an increase in the money supply, and that increase leads ultimately to price hikes.
During April 2022, year-over-year money supply growth was at 7.23 percent. That's down from March's rate of 7.41 percent and April 2021's rate of 36.8 percent.
Paul Krugman recently wrote that the reason we see high inflation is that people mistakenly believe inflation is in our future and act accordingly. This reasoning is false.
Even with November's small rise, money supply growth is far below the unprecedented highs experienced during the past two years. This points to a weakening economy.
During August 2021, year-over-year (YOY) growth in the money supply was at 8.2 percent. That's down from July's rate of 8.9 percent, and down from the August 2020 rate of 37.5 percent.
During May 2021, year-over-year (YOY) growth in the money supply was at 15.3 percent. That's down from April's rate of 23.1 percent, and down from the May 2020 rate of 29.5 percent.
During March 2021, year-over-year (YOY) growth in the money supply was at 34.1 percent. That's down slightly from February's rate of 39.1 percent, and up from the March 2020 rate of 11.3 percent.
During February 2021, year-over-year growth in the money supply was 39.1 percent. That makes February the eleventh month of remarkably high growth in the wake of unprecedented quantitative easing and "stimulus."
