Friday, 16 January 2015

"Austrian" True Money Supply Weekly, as of 5 January 2015

A note to regular readers: I've shortened the headline as of this week. The money supply applied remains the same. 

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 0.34% on last week for the week ending 5 January 2015. At $10.6506 trillion, a new high for the sixth consecutive week, the money supply is now up $35.9 billion, or 0.34%, year to date (first week of the new year).

The 1-year growth rate declined 15 basis points from last week to 7.25%, below both the 26- and 52-week moving averages and also below the long term average since 1980. The growth rate was however higher than same week the previous year for the fourth consecutive week.

The 5-year annualised growth rate, which captures a longer term trend, has increased since hitting an intermediate trough of 9.91% on 1 December last year. But the growth rate continues to drop compared to one year ago as it has done now for 58 consecutive weeks.

Click here for a recap of money supply developments from 1981 to 2014.


The money supply applied in this report is a short version of the original "Austrian" True Money Supply (TMS) developed by Murray Rothbard and Joseph Salerno. Here's an update as of December 2014 to show that the two are virtually identical. The short version was developed to follow the money supply on a weekly basis as three of the components included in the TMS are only published on a monthly basis.

Also see:

Money Makes The U.S. Economy Appear To Go Round. Until It Does So No More.