Search Results for: velocity

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

Global Money Velocity Growth Global money velocity growth is back to its pre-pandemic level, around zero. Image: Oxford Economics

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

U.S. Interest Rates – Velocity of MZM Money Stock and Natural Rate of Interest Should investors expect low interest rates for a long period of time? This chart helps to explain the secular trend for U.S. interest rates. Image: Fidelity Investments

Core Consumer Price Inflation vs. Velocity of Money There are downside risks to U.S. inflation, as velocity of money tends to lead U.S. core CPI. Image: BCA Research

Demographics – U.S. Money Velocity and Population Growth The population of 20-54s will start to increase and could therefore lead to higher money velocity. Image: Longview Economics

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

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

The Secular Trend for U.S. Interest Rates This nice chart shows the U.S. 10-year Treasury yield against the natural rate (nominal R-Star) and monetary velocity. In a sense, it explains the secular trend for U.S. interest rates. Image: Fidelity Investments