Best of the Week
Most Popular
1. Stock Markets and the History Chart of the End of the World (With Presidential Cycles) - 28th Aug 20
2.Google, Apple, Amazon, Facebook... AI Tech Stocks Buying Levels and Valuations Q3 2020 - 31st Aug 20
3.The Inflation Mega-trend is Going Hyper! - 11th Sep 20
4.Is this the End of Capitalism? - 13th Sep 20
5.What's Driving Gold, Silver and What's Next? - 3rd Sep 20
6.QE4EVER! - 9th Sep 20
7.Gold Price Trend Forecast Analysis - Part1 - 7th Sep 20
8.The Fed May “Cause” The Next Stock Market Crash - 3rd Sep 20
9.Bitcoin Price Crash - You Will be Suprised What Happens Next - 7th Sep 20
10.NVIDIA Stock Price Soars on RTX 3000 Cornering the GPU Market for next 2 years! - 3rd Sep 20
Last 7 days
FED Balance Sheet Current State - 5th Mar 21
The Global Vaccine Race Against Time and Variants - 5th Mar 21
US Treasury Yields Rally May Trigger A Crazy Ivan Event (Again) In Stock Market - 5th Mar 21
After Gold’s Slide, What Happens to Miners? - 5th Mar 21
Racism Pandemic Why UK Black and Asians NOT Getting Vaccinated - NHS Covid-19 BAME - 5th Mar 21
Get Ready for Inflation Mega-trend to Surge 2021 - 4th Mar 21
Stocks, Gold – Rebound or Dead Cat Bounce? - 4th Mar 21
The Top Technologies That Are Transforming the Casino Industry - 4th Mar 21
How to Get RICH Crypto Mining Bitcoin, Ethereum With NiceHash - 4th Mar 21
Coronavirus Pandemic Vaccines Indicator Current State - 3rd Mar 21
AI Tech Stocks Investing 2021 Buy Ratings, Levels and Valuations Explained - 3rd Mar 21
Stock Market Bull Trend in Jeopardy - 3rd Mar 21
New Global Reserve Currency? - 3rd Mar 21
Gold To Monetary Base Ratio Says No Hyperinflation - 3rd Mar 21
US Fed Grilled about Its Unsound Currency, Digital Currency Schemes - 3rd Mar 21
The Case Against Inflation - 3rd Mar 21
How to Start Crypto Mining Bitcoins, Ethereum with Your Desktop PC, Laptop with NiceHash - 3rd Mar 21
AI Tech Stocks Investing Portfolio Buying Levels and Valuations 2021 Explained - 2nd Mar 21
There’s A “Chip” Shortage: And TSMC Holds All The Cards - 2nd Mar 21
Why now might be a good time to buy gold and gold juniors - 2nd Mar 21
Silver Is Close To Something Big - 2nd Mar 21
Bitcoin: Let's Put 2 Heart-Pounding Price Drops into Perspective - 2nd Mar 21
Gold Stocks Spring Rally 2021 - 2nd Mar 21
US Housing Market Trend Forecast 2021 - 2nd Mar 21
Covid-19 Vaccinations US House Prices Trend Indicator 2021 - 2nd Mar 21
How blockchain technology will change the online casino - 2nd Mar 21
How Much PC RAM Memory is Good in 2021, 16gb, 32gb or 64gb? - 2nd Mar 21
US Housing Market House Prices Momentum Analysis - 26th Feb 21
FOMC Minutes Disappoint Gold Bulls - 26th Feb 21
Kiss of Life for Gold - 26th Feb 21
Congress May Increase The Moral Hazard Building In The Stock Market - 26th Feb 21
The “Oil Of The Future” Is Set To Soar In 2021 - 26th Feb 21
The Everything Stock Market Rally Continues - 25th Feb 21
Vaccine inequality: A new beginning or another missed opportunity? - 25th Feb 21
What's Next Move For Silver, Gold? Follow US Treasuries and Commodities To Find Out - 25th Feb 21
Warren Buffett Buys a Copper Stock! - 25th Feb 21
Work From Home Inflationary US House Prices BOOM! - 25th Feb 21
Man Takes First Steps Towards Colonising Mars - Nasa Perseverance Rover in Jezero Crater - 25th Feb 21
Musk, Bezos And Cook Are Rushing To Lock In New Lithium Supply - 25th Feb 21
US Debt and Yield Curve (Spread between 2 year and 10 year US bonds) - 24th Feb 21
Should You Buy a Landrover Discovery Sport in 2021? - 24th Feb 21
US Housing Market 2021 and the Inflation Mega-trend - QE4EVER! - 24th Feb 21
M&A Most Commonly Used Software - 24th Feb 21
Is More Stock Market Correction Needed? - 24th Feb 21
VUZE XR Camera 180 3D VR Example Footage Video Image quality - 24th Feb 21
How to Protect Your Positions From A Stock Market Sell-Off Using Options - 24th Feb 21
Why Isn’t Retail Demand for Silver Pushing Up Prices? - 24th Feb 21
2 Stocks That Could Win Big In The Trillion Dollar Battery War - 24th Feb 21
US Economic Trends - GDP, Inflation and Unemployment Impact on House Prices 2021 - 23rd Feb 21
Why the Sky Is Not Falling in Precious Metals - 23rd Feb 21
7 Things Every Businessman Should Know - 23rd Feb 21
For Stocks, has the “Rational Bubble” Popped? - 23rd Feb 21
Will Biden Overheat the Economy and Gold? - 23rd Feb 21
Precious Metals Under Seige? - 23rd Feb 21
US House Prices Trend Forecast Review - 23rd Feb 21
Lithium Prices Soar As Tesla, Apple And Google Fight For Supply - 23rd Feb 21
Stock Markets Discounting Post Covid Economic Boom - 22nd Feb 21
Economics Is Why Vaccination Is So Hard - 22nd Feb 21
Pivotal Session In Stocks Bull Bear Battle - 22nd Feb 21
Gold’s Downtrend: Is This Just the Beginning? - 22nd Feb 21
The Most Exciting Commodities Play Of 2021? - 22nd Feb 21
How to Test NEW and Used GPU, and Benchmark to Make sure it is Working Properly - 22nd Feb 21
US House Prices Vaccinations Indicator - 21st Feb 21
S&P 500 Correction – No Need to Hold Onto Your Hat - 21st Feb 21
Gold Setting Up Major Bottom So Could We See A Breakout Rally Begin Soon? - 21st Feb 21
Owning Real Assets Amid Surreal Financial Markets - 21st Feb 21
Great Investment Ideas For 2021 - 21st Feb 21

Market Oracle FREE Newsletter

FIRST ACCESS to Nadeem Walayat’s Analysis and Trend Forecasts

Global Money Supply Data and Comparison for 2008

Economics / Money Supply Jul 14, 2008 - 06:39 PM GMT

By: Mike_Hewitt

Economics

Best Financial Markets Analysis ArticleThis essay makes comparisons between the money supply of 25 selected economic areas and discusses the ratios between the values of official gold reserves to outstanding currency.

For the purposes of this essay, the Euro-Zone includes the thirteen countries that use the Euro currency: Austria, Belgium, Czech Republic, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal, Slovenia and Spain. China includes Hong Kong. All other economic areas are individual countries.


These 25 economic areas include 38 countries and make up 89.6% of the world's GDP and 65.1% of the world's population .

Monetary Aggregates for Selected Countries

The Bank of International Settlements (BIS) has a link on their website which lists all of the central banks for different countries . The following charts use money supply data from these official websites. The link to the raw data is at each country's name.

There exists variability in the methodology for calculating different monetary aggregates. This makes cross-country comparisons difficult. Money is defined across a continuum from narrow money that includes highly liquid forms of money (money as a means of exchange) to broad money that covers less liquid forms of money (money as a store of value).

In general terms, M0 refers to outstanding currency (banknotes and coins) in circulation excluding vault cash. M1 is currency plus overnight (demand) deposits plus vault cash. M2 includes the sum of M1 and savings deposits (agreed maturity of up to two years or deposits redeemable at notice of up to three months). M3 is the sum of M2 and repurchase agreements, money market fund shares/units and debt securities up to two years.

Additionally, not every country publishes all four of the common monetary aggregates.

For instance, the Bank of England does not publish official numbers for M1, M2 or M3. For this article, estimates using European Economic and Monetary Union (EMU) aggregates for the U.K. are used. These standards are based on those employed by the European Union.

Some countries, such as the U.S. do not officially publish M0. Where available, figures for outstanding currency in circulation were used. The U.S. Federal Reserve ceased publishing M3 on May 23, 2006 . However, various independent sources have continued to publish U.S. M3 figures and one such source is used here for U.S. M3 money supply.

The money supply levels for each country were converted into U.S. dollars on July 11, 2008 at the displayed exchange rates for ease of comparison. The last column shows the date at which the money supply data is taken from.

Name of Country M0 (US$bn) M1 (US$bn) M2 (US$bn) M3 (US$bn) Exchange (1USD = ) Date Taken
Australia 37.7 208.0 459.3 962.0 1.0426 AUD Apr-08
Brazil 56.3 114.3 519.2 1,060.8 1.6141 BRL May-08
Canada 49.0 386.6 800.1 1,228.6 1.0114 CAD May-08
China 440.5 2,236.2 6,363.0 N/A 6.8552 CNY May-08
Denmark 10.6 162.6 211.7 237.3 4.7401 DKK Feb-08
E.U. 1,013.4 6,072.7 12,039.9 14,197.4 0.6355 EUR May-08
India 139.9 256.6 947.9 949.1 43.200 INR Jun-08
Indonesia 16.6 39.7 151.9 N/A 9174.3 IDR May-07
Japan 680.1 3,641.4 6,901.6 11,367.9 107.01 JPY Apr-08
Kuwait 2.7 19.9 80.2 80.2 0.2667 KWD May-08
Mexico 38.1 132.0 575.0 606.4 10.310 MXN Apr-08
Norway 8.6 144.3 281.9 N/A 5.1225 NOK Apr-08
Poland 47.4 165.1 283.0 288.2 2.0822 PLN May-08
Russia 153.8 N/A 570.1 N/A 23.412 RUB Apr-08
Saudi Arabia 19.8 111.6 187.2 224.9 3.7547 SAR May-08
Singapore 12.7 52.6 233.9 240.8 1.3607 SGD Apr-08
South Africa 13.9 96.2 192.1 235.2 7.7208 ZAR May-08
South Korea 56.7 300.7 1,350.1 2,163.5 1000.6 KRW Apr-08
Sweden 16.1 222.6 N/A 315.4 6.0088 SEK Dec-07
Switzerland 35.4 257.3 421.9 609.5 1.0298 CHF May-08
Turkey 22.8 45.2 199.7 215.5 1.2228 TRY Jun-08
U.A.E. 7.1 49.4 154.0 189.5 3.6742 AED Dec-07
U.K. 99.1 1,990.7 3,291.1 3,882.3 0.5055 GBP May-08
U.S. 832.6 1,388.3 7,688.1 13,800.0 1.0000 USD Jun-08
Venezuela 6.2 43.7 71.9 71.9 2.1522 VEF May-08

M3 Money Supply for Selected Countries

When considering M3, the total money supply exceeds US$60.2 trillion! Of this amount, the U.S., Euro-Zone and Japan account for US$33.1 trillion or 64.4% of the total. The following graph shows a cross-country comparison for M3.

Please note that the writer was unable to locate official M3 money supply values for China, Indonesia, Norway, and Russia. For these countries, M2 figures were substituted for M3 in the above figure. As a result, these four countries are underestimated.

M3 Money Supply Growth for Selected Countries

Of the selected economic areas the annual increase of M3 ranges from under 1.0% year over year for Japan to nearly 40% for the United Arab Emirates! Higher growth rates for money supply do not translate to overall prosperity in the long run. If it did, humanity would have eliminated poverty long ago. Instead, what occurs is an inflationary boom followed by a recession. A hyperinflationary period may occur should confidence in the currency vanish. See a detailed list of failed currencies here .

Name of Country M0 (Y/Y%) M1 (Y/Y%) M2 (Y/Y%) M3 (Y/Y%) Date Taken
Australia 5.2% 3.3% 16.9% 20.4% Apr-08
Brazil 21.1% 16.8% 26.2% 17.4% May-08
Canada 3.4% 7.9% 8.8% 13.2% May-08
China 12.9% 17.9% 18.1% N/A May-08
Denmark N/A 10.5% 18.5% 22.3% Feb-08
E.U. 7.5% 2.3% 10.1% 10.5% May-08
India 19.3% 19.8% 21.8% 22.5% Jun-08
Indonesia 21.5% 28.1% 14.9% N/A May-07
Japan 1.86% -1.22% 0.71% 0.92% Apr-08
Kuwait 10.8% 28.2% 23.0% 23.0% May-08
Mexico 9.2% 10.2% 12.0% 14.1% Apr-08
Norway 10.7% 7.6% 14.0% N/A Apr-08
Poland 5.2% 17.3% 16.7% 15.1% May-08
Russia 25.9% N/A 33.4% N/A Apr-08
Saudi Arabia 13.0% 27.0% 21.4% 21.6% May-08
Singapore 9.7% 29.0% 11.9% 12.4% Apr-08
South Africa 14.1% 12.4% 19.5% 20.9% May-08
South Korea N/A -0.6% 16.3% 14.6% Apr-08
Sweden 0.5% 10.7% N/A 16.4% Dec-07
Switzerland 2.1% -2.0% -4.5% 2.6% May-08
Turkey 20.0% 20.1% 21.5% 21.1% Jun-08
U.A.E. 18.8% 51.4% 41.7% 37.4% Dec-07
U.K. 5.7% 16.0% 12.6% 13.8% May-08
U.S. 1.6% 1.5% 6.0% 18.8% Jun-08
Venezuela 1.6% 1.5% 6.0% 18.8% May-08

 

The overall weighted annual M3 money supply growth for all areas covered in this essay is 12.4%. Where M3 figures are not available, M2 figures are substituted. Last year, the total M3 money supply for these 25 economic areas was US$53.7 trillion, now it is US$60.3 trillion.

M0 Money Supply for Selected Countries

The total for M0 (currency in circulation) for the above 25 economic areas amounts to US$3.92 trillion. Using the same calculation as for determining overall M3 money supply growth we find that overall M0 and/or total amount of currency is increasing by 6.6% per annum.

The value for the top three currencies in circulation - the USD, Euro and Yen, comprise 66.2% of the total value of all currencies discussed here.

Comparison of Gold Reserves to Currency

According to the World Gold Council , at the end of 2006 the central banks of the 38 countries within these 25 economic areas held 24,170 tonnes of gold. This represents 91.3% of the gold held by all countries of the world.

As of July 25, 2007 the closing price for a troy ounce of gold was US$964.10. There are 32,150.75 troy ounces in a metric tonne. Thus, the value of the gold held by the 38 countries is US$749.2 billion. The total value of the currency issued by these countries - US$3.82 trillion - is nearly five times that figure! This suggests that, for the time being, the value of the official central bank gold reserves equals 19.6% of the value of their outstanding currency.

The following chart shows a ratio between the value of the official central bank gold reserves to the value of M0 (circulating currency). Norway and United Arab Emirates have no official gold reserves. The 563.1 metric tonnes from the European Central Bank was added to the Euro-Zone, bringing the total for this economic area up to 10,975.3 metric tonnes as of June 2008.

At the time of writing this article, the official gold reserves of Venezuela appears to out-value all of its outstanding currency by 78%.

Both Switzerland and Kuwait have gold reserves nearly equal to the value of the currency issued.

Although not included in the analysis, Lebanon has official gold reserves of 286.8 metric tonnes valued at US$8.89 billion at time of writing this article. The official statistic for Lebanese currency in circulation is only US$2.4 billion. The most recent annual year-over-year growth rate for the Lebanese Pound is 8.3%.

By Mike Hewitt
http://www.dollardaze.org

Mike Hewitt is the editor of www.DollarDaze.org , a website pertaining to commentary on the instability of the global fiat monetary system and investment strategies on mining companies.

Disclaimer: The opinions expressed above are not intended to be taken as investment advice. It is to be taken as opinion only and I encourage you to complete your own due diligence when making an investment decision.

Mike Hewitt Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Comments

mehul shah
10 Dec 10, 01:53
global total money data

can i get global total money data in actual figures by 2001 to 2010 ? if not than can u give me which source i can get ?


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules