M-2

May 6, 2020 hen banks lend to consumers and businesses, they put the proceeds into a checking account.  At that point the money supply begins to grow.  In March M-2 grew at a 21.0% annual rate.  In April it climbed by 46%.  Those are funds that businesses can use to...

Excess Reserves

May 6, 2020 In the wake of the economic meltdown caused by the government’s dramatic measures to halt the spread of the corona virus the Fed has leaped into action.  It boosted its balance sheet by $2.2 trillion primarily via purchases of U.S. government...