Submitted by Taps Coogan on the 22nd of November 2019 to The Sounding Line.

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As we have noted on several occasions, a decade and counting of extremely accomodative monetary policy has produced the largest increases in the money supply on record for several countries around the world. To that end, the following chart, from HowMuch.net, shows a map of the world with countries scaled based on their total money supply (broad money). Broad money includes “paper money, funds in a bank account, and basically any other financial instrument that you can use to make payments.” The data comes via the CIA Factbook.

Perhaps the most interesting aspect of the map is that China has, by far, the largest money supply in the world ($25 trillion), nearly twice that of the US ($14 trillion), despite having an economy that is about 35% smaller than the US. Relative to the US and Western Europe, Japan, Taiwan, and South Korea also have out-sized money supplies.

As we have noted before, Chinese money creation has outstripped Chinese economic growth since the Financial Crisis by over two fold and outstripped US money creation by over three fold.

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