During Saturday's ‘Coronavirus: Myths and Realities Symposium,' where I was a participant, I presented three charts that I originally published in the EPJ Daily Alert.
The charts show 13-week annualized money supply growth since the start of the COVID-19 panic compared to some other periods. The method I used to calculate the growth is the one that I outlined in The Fed Flunks: My Speech at the New York Federal Reserve Bank.
The first slide shows money supply growth since the start of this year compared to previous years starting with the year 2012.
As can clearly be seen money supply growth has skyrocketed over the last 4 weeks.
The next slide shows 13-week annualized money supply growth since 1981.
As can be seen, there have been only two periods when money supply growth was faster than now. Money supply growth late into the Great Recession was faster as was the money supply growth in the early 1980s after Paul Volcker started up the money printing machine after battling price inflation for about 3 years.
The final slide shows money supply growth since the start of the 2008 financial panic in September 2008 and money growth since the start of the COVID-19 panic.
As can be seen, the 2008 Ben Bernanke money pump started from a much lower money supply growth rate than the current money pump.
In 2008, money supply growth was near zero, however, at the start of the current COVID-inspired money pump, money supply was already climbing at a rate of 8.0%. Since then, in the last 4 weeks, it has essentially doubled to 15.7%.