Comments on: Canada’s Money Supply Is Growing At The Slowest Rate On Record

By: Andrew Baldwin

Andrew Baldwin — Mon, 03 Jul 2023 13:52:35 +0000

Great blog from Daniel Wong. The 12-month growth rate of broad money was also just 2.1% in March 2023, and was the record low growth rate then. (The series starts in January 1968.) The monthly rate of change for April 2023 was -0.2%, the first monthly decline in the whole history of the series, if one ignores the -0.01% change in August 2022, when the series was essentially flat. Maybe one shouldn’t ignore it, and take on the fact that there were two declines in the last nine months, the only two ever. Even given the big overhang of the existing stock of broad money, these broad money declines should surely be cause for concern.

By: Mark Sibthorpe

Mark Sibthorpe — Tue, 27 Jun 2023 08:11:28 +0000

If you believe that inflation is caused by too much money sloshing around then this is a good thing.

By: Howard

Howard — Mon, 26 Jun 2023 20:35:34 +0000

Great info.

By: Jo

Jo — Mon, 26 Jun 2023 18:42:29 +0000

“The BoC argues the M2++ has a close relationship with inflation, leading by 1 to 2 years. A rapid expansion of the M2++ is found to precede increased inflation, while a slowdown indicates deceleration may be on the horizon. The former typically precedes good times, when people are most comfortable borrowing. The latter not-so-great times, since slowing inflation is due to a lack of demand.” – That right there is the most important, most usable paragraph I’ve read on here in my 7 years following this site.

Thanks for this important and informative piece of info.