Friday, 20 March 2015

Global M

By Sean Corrigan

As part of our analytical process, we frequently consult our proprietary estimate of global money supply, something we construct by combining the individual measures for 15 countries (strictly 33, since we include the euro as one of them) which together account for almost three-quarters of global output.

When we do so, it immediately becomes apparent how much more closely trends in global equity markets – here approximated by the MSCI All-Country index – have tended to follow developments in the supply of this money since the onset of the financial crisis.

Continue reading the article here.