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But the M1 money supply went from $4 trillion to over $20 trillion during the pandemic, right? https://fred.stlouisfed.org/series/M1SL https://fred.stlouisfed.

But the M1 money supply went from $4 trillion to over $20 trillion during the pandemic, right? https://fred.stlouisfed.org/series/M1SL https://fred.stlouisfed.org/series/M1SL

egberts1 4y ago
Whew. I wonder how much more printing press did the Dept of Treasury had installed, just to be able to do that.
- amluto 4y ago
  None, because the money supply massively overcounts the combined amounts of actual cash and Fed deposits. This is, for better or for worse, more or less by design.
  - egberts1 4y ago
    This is just the M1?
amluto 4y ago
I have no idea how much of the change this accounts for, but the notes explain that the M1 definition changed in May 2020, adding: > savings deposits (including money market deposit accounts) Which could be a substantial effect.
paulpauper 4y ago
that chart is misleading. that abrupt change is due to adjustmentsto how M1 is compiled, not due the money supply abruptly increasing so much
- yucky 4y ago
  Can you elaborate?