Friday, 10 October 2014

The Short Version of the "Austrian" True Money Supply (TMS), as of 29 September 2014

The short version of the Austrian True Money Supply for the U.S., the measure of the money supply applied in this weekly report, increased 0.18% on last week for the week ending 29 September 2014. At $10.2523 trillion, the money supply is now up 3.73% year to date.

The year on year growth rate in the money supply fell to 7.06% for the week, the lowest recorded since 31 March. This was lower than both the long term average of 8.30% since 1980 and the 7.87% average during the last 52 weeks.

The 5-year annualised growth rate in the money supply continues to drop. At 10.21%, the current growth rate was the lowest it's been for 144 weeks (week ending 26 December 2011).

The growth rate has now declined for 44 consecutive weeks, a development last seen during the 44 week period spanning 15 August 2005 to 12 June 2006.

Ever since I first started publishing this weekly report in August last year, the overall trend for the money supply growth rate has been heading down. This remains the case today as the table and chart below demonstrate. This trend will have to, ultimately, lead to certain markets and asset prices entering a less inflationary environment, in some cases leading to outright drops in prices. 

Visit the "Austrian" True Money Supply archive here.