m2 money supply

The full data sets for the 64 years from 1959 to 2022 show no discernable association patterns (correlations) for M2 money supply growth and consumer inflation changes.¹  This post continues that analysis by looking specifically at the various regimes of inflation change during the 64-year timeline. This article analyzes the association of CPI with M2 during the four periods from 1959 to 2022 with negative inflation changes (disinflation/deflation) surges.

Image by Kevin Schneider from Pixabay

The full data sets for the 64 years from 1959 to 2022 show no discernable association patterns (correlations) for M2 money supply growth and consumer inflation changes.¹  This post continues that analysis by looking specifically at the various regimes of inflation change during the 64-year timeline.

From an image by Qubes Pictures from Pixabay

We have found that the correlation relationships between various types of credit and inflation are variable over time.  So far, the kinds of credit studied are government deficit spending,^1,6 consumer credit,² mortgage debt,³ nonfinancial corporate credit,⁴ and financial sector debt.⁵ Here, we examine the relationship between the total money supply (M2) and Consumer Price Index (CPI) inflation.⁷

Photo by Giorgio Trovato on Unsplash.