Courtesy of Mish.
Here are a few interesting charts of M1 money supply vs. Real GDP/10 from reader WendyBG.
Data
M1 consists of: (1) currency outside the U.S. Treasury, Federal reserve Banks, and the vaults of depository institutions; (2) traveler’s checks of nonbank issuers; (3) demand deposits; and (4) other checkable deposits (OCDs), which consist primarily of negotiable order of withdrawal (NOW) accounts at depository institutions and credit union share draft accounts.
Click on any chart to see a sharper image.
M1 vs. Real GDP/10 1959-Present
M1 vs. Real GDP/10 2000-Present
M1 vs. Annualized Change in Real GDP
The third chart shows annualized change in GDP vs. M1….
