by Ryan McMaken
The money supply growth rate rose again in March, climbing to a 92-month high. The last time the growth rate was higher was during July of 2012, when the growth rate was 11.5 percent. At that time, however, money-supply growth was on its way down. The current upward trend has more in common with the trend we saw during late 2008 and early 2009.
During March 2020, year-over-year (YOY) growth in the money supply was at 11.37 percent. That’s up from February’s rate of 7.33 percent, and up from March 2019’s rate of 1.9 percent. The increase in money supply growth in March represents a sizable reversal of the trend we saw during most of 2019. In August, the growth rate hit a 120-month low, falling to the lowest growth rates we’d seen since 2007. The growth rate has now surged back to where it was in the wake of the 2008 financial crisis.