- Money supply growth can often be a helpful measure of economic activity, and an indicator of coming recessions.
- Even with March's bump in growth, money supply growth remains far below the unprecedented highs experienced during much of the past two years.
- The money supply metric used here—TMS—is designed to provide a better measure of money supply fluctuations than M2.
- A sizable drop in the TMS growth levels often precedes an inversion in the yield curve which itself points to an impending recession.
For further details see:
Slowing Money-Supply Growth In 2022 Points To Recession