by Ryan McMaken
Money supply growth surged to another all-time high in May, following April’s all-time high that came in the wake of unprecedented quantitative easing, central bank asset purchases, and various stimulus packages.
The growth rate has never been higher, with the 1970s as the only period that comes close. It was expected that money supply growth would surge in recent months. This usually happens in the wake of the early months of a recession or financial crisis. The magnitude of the growth rate, however, was unexpected.
During May 2020, year-over-year (YOY) growth in the money supply was at 29.80 percent. That’s up from April’s rate of 21.3 percent, and up from May 2019’s rate of 2.15 percent.