Money Supply Growth Fell to a 104-Month Low in May

Last month, the money supply growth rate in the United States fell to a 104-month low, rising by 5.91 percent. This is the lowest growth rate recorded since July 2008 when the growth rate was 5.24 percent.
Given the imprecise nature of these estimates, however, it is fair to say that the rate of growth is essentially unchanged since March, and for the past three months, money supply growth has been at eight-year lows.
In March, we reported that money supply growth had fallen to a 103-month low. In April, the growth rate increased slightly to 6 percent, but fell again in May.
The M2 measure also showed a downward turn in recent months, although not to the same extent as the “Austrian” measure. In May, however, M2 growth had moderated to the point of matching our money-supply growth measure with both now being at 5.9 percent.

This post was published at Ludwig von Mises Institute on June 21, 2017.