Search Results for: M2 velocity

Economic Growth vs. M2 Velocity The decline in economic growth has coincided with a collapse in M2 velocity Image: Real Investment Advice

M2 – Money Supply vs. Monetary Velocity Is printing more money good for the U.S. economy? Despite strong M2 growth, money velocity has declined. Image: Real Investment Advice

Velocity of M2 Money Stock in the U.S. vs. The U.S. Deficit The rise in the U.S. deficit has coincided with a collapse in M2 velocity. Image: Real Investment Advice

Velocity of M2 Money Stock in the U.S. Is there really an inflation threat? The surge in M2 money growth has coincided with a collapse in M2 velocity. Image: The Daily Shot

U.S. Broad Money (M2) After shrinking in 2022 and 2023, U.S. M2 growth has continued to expand. That’s good news for nominal spending and asset prices, but it also brings the familiar inflation question back into focus if money growth and velocity both stay hot. Image: Gavekal, Macrobond

U.S. Money Supply M2 The pickup in the U.S. M2 money supply matters because it signals increasing liquidity that—if excessive relative to economic output and accompanied by rising velocity—could reignite inflationary pressures. Image: Deutsche Bank

Total Debt vs. U.S. GDP vs. Monetary Velocity The rise in debt has coincided with a collapse in M2 velocity. Image: Real Investment Advice

Valuation – S&P 500 Market Capitalization to GDP vs. S&P 500 Market Capitalization to M2 This chart puts market valuations into perspective, as the massive collapse in the velocity of money has led the Fed to print money. Image: Nordea and Macrobond

U.S. Core Inflation Expected Over the Next 21 Months (Leading Indicator) M2 velocity year-over-year tends to lead U.S. core CPI by 21 months (R² = 0.52 since 1996).  It has been quite accurate for more than 20 years. Click the Image to Enlarge