M2 – Money Supply vs. Monetary Velocity
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
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
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
Economic Growth vs. M2 Velocity The decline in economic growth has coincided with a collapse in M2 velocity 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
Global Money Velocity Growth Global money velocity growth is back to its pre-pandemic level, around zero. Image: Oxford Economics
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. 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
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