by Ryan McMaken
Mises.org
Money-supply growth rose year over year in February for the seventh month in a row, the first time this has happened since mid-2022. The current trend in money-supply growth suggests a continued reversal of more than a year of historically large contractions in the money supply that occurred throughout much of 2023 and 2024. As of February, the money supply appears to be continuing in a period of moderate monetary growth coming out of a period of historically large swings in monetary trends from early 2020 to mid-2024.
In February, year-over-year growth in the money supply was at 2.75 percent. That’s slightly below December’s 28-month high of 2.79, February reported the second-largest year-over-year increase since September 2022. February’s growth rate was up from January’s rate of 2.34 percent. It’s also a big change from February 2024’s year-over-year decline of 5.62 percent. Last year, the US money supply was still in the midst of the largest drop in money supply we’ve seen since the Great Depression. Prior to 2023, at no other point for at least sixty years had the money supply fallen by so much.