Friday, April 26, 2013

Growth in M4


I previously defined "M4" for my own purposes as M2 + the public debt - treasuries held by the Fed.  I think this is probably the best measure of the broad money supply, and it is growing at about 10% per year.

Growth comes from: 1) private banks making loans, 2) the Fed monetizing MBS, and 3) the Treasury issuing debt.

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