Money-Supply Growth Turns Negative for First Time in 28 Years, by Ryan McMaken

In a fiat-debt addicted economy, negative money supply inevitably precedes contraction. From Ryan McMaken at

Money supply growth fell again in November, and this time it turned negative for the first time in 28 years. November’s drop continues a steep downward trend from the unprecedented highs experienced during much of the past two years. During the thirteen months between April 2020 and April 2021, money supply growth in the United States often climbed above 35 percent year over year, well above even the “high” levels experienced from 2009 to 2013.

Since then, the money supply growth has slowed quickly, and we’re now seeing the first time the money supply has actually contracted since the 1990s. The last time the year-over-year change in the money supply slipped into negative territory was in November of 1994. At that time, negative growth continued for 15 months, finally turning positive again in January of 1996.

During November 2022, year-over-year (YOY) growth in the money supply was at -0.28 percent. That’s down from October’s rate of 2.59 percent, and down from November 2021’s rate of 6.66 percent.


The money supply metric used here—the “true” or Rothbard-Salerno money supply measure (TMS)—is the metric developed by Murray Rothbard and Joseph Salerno, and is designed to provide a better measure of money supply fluctuations than M2. The Mises Institute now offers regular updates on this metric and its growth. This measure of the money supply differs from M2 in that it includes Treasury deposits at the Fed (and excludes short-time deposits and retail money funds).

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