This chart shows the money supply over a longer time period (click on the image to get a better view). 1971 is when Nixon pulled us off the gold standard. Greenspan took over in 83. 2001 is when our monetary policy went bonkers and caused the current fiasco.
2 comments:
I was wondering if you could tell us what money is. I'm not talking about some kind of ideal money which exists "beyond the sky". I want to know what money is here and now.
We can't exactly know if the politicians are acting wisely with money if we don't know what money is.
These charts show the aggregate of all physical money like coins and currency, demand deposits, which are checking accounts and NOW accounts, all time-related deposits, savings deposits, and non-institutional money-market funds, all large time deposits, institutional money-market funds, short-term repurchase agreements, along with other larger liquid assets.
That pretty much adds up to an arbitrary, meaningless number since the actions of the Fed and Treasury so greatly manipulate the above.
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