Friday, 27 January 2017

Money Supply Update (27 Jan-17)

The most recent money supply data shows that the y/y growth rate of the short version* of the true money supply (TMSS, the black line) increased slightly from last, up from 8.7% to 9.0%, and in line with the trend growth during during the last three years or so. 

The growth rate for the true money supply excluding savings deposits (TMSS-S, blue line), a more narrow definition of the money supply, decreased slightly from last week from 11.7% to 11.1%. 

Monetary inflation remains high compared to the average y/y growth rates since 1987: TMSS is currently 24% above average while TMSS-S is a whopping 88% above its long term average.

* The short version excludes U.S. Government Demand Deposits and Note Balances, Demand Deposits Due to Foreign Commercial Banks, and Demand Deposits Due to Foreign Official Institutions as they are reported on a monthly basis only. As these three items tend to be relatively small, removing them allows us to track the money supply on a weekly basis. 

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