Best of the Week
Most Popular
1. US Housing Market House Prices Bull Market Trend Current State - Nadeem_Walayat
2.Gold and Silver End of Week Technical, CoT and Fundamental Status - Gary_Tanashian
3.Stock Market Dow Trend Forecast - April Update - Nadeem_Walayat
4.When Will the Stock Market’s Rally Stop? - Troy_Bombardia
5.Russia and China Intend to Drain the West of Its Gold - MoneyMetals
6.BAIDU (BIDU) - Top 10 Artificial Intelligence Stocks Investing To Profit from AI Mega-trend - Nadeem_Walayat
7.Stop Feeding the Chinese Empire - ‘Belt and Road’ Trojan Horse - Richard_Mills
8.Stock Market US China Trade War Panic! Trend Forecast May 2019 Update - Nadeem_Walayat
9.US China Trade Impasse Threatens US Lithium, Rare Earth Imports - Richard_Mills
10.How to Invest in AI Stocks to Profit from the Machine Intelligence Mega-trend - Nadeem_Walayat
Last 7 days
US Dollar Gold Trend Analysis - 15th June 19
Gold Stocks “Launch” is in Line With Fundamentals - 15th June 19
The Rise of Silver and Major Economic Decline - 15th June 19
Fire Insurance Claims: What Are the Things a Fire Claim Adjuster Does? - 15th June 19
How To Find A Trustworthy Casino? - 15th June 19
Boris Johnson Vs Michael Gove Tory Leadership Grudge Match - Video - 14th June 19
Gold and Silver, Precious Metals: T-Minus 3 Seconds To Liftoff! - 14th June 19
Silver Investing Trend Analysis - Video - 14th June 19
The American Dream Is Alive and Well - in China - 14th June 19
Keeping the Online Gaming Industry in Line - 14th June 19
How Acquisitions Affect Global Stocks - 14th June 19
Please Don’t Buy the Dip in Nvidia or Other Chip Stocks - 14th June 19
A Big Thing in Investor Education is Explainer Videos - 14th June 19
IRAN - The Next American War - 13th June 19
Boris Johnson Vs Michael Gove Tory Leadership Grudge Match Contest - 13th June 19
Top Best VPN Services You Can Choose For Your iPhone - 13th June 19
Tory Leadership Contest Betting Markets Forecast - Betfair - 13th June 19
US Stock Market Setting Up A Pennant Formation - 13th June 19
Which Stocks Will Lead The Cannabis Rebound? - 13th June 19
The Privatization of US Indo-Pacific Vision - Project 2049, Armitage, Budget Ploys and Taiwan Nexus - 12th June 19
Gold Price Breaks to the Upside - 12th June 19
Top Publicly Traded Casino Company Stocks for 2019 - 12th June 19
Silver Investing Trend Analysis - 12th June 19
Why Blue-Chip Dividend Stocks Aren’t as Safe as You Think - 12th June 19
Technical Analysis Shows Aug/Sept Stock Market Top Pattern Should Form - 12th June 19
FTSE 100: A Top European Index - 12th June 19
Gold Surprise! - 11th June 19
How Forex Indicators are Getting Even More Attention in the Market? - 11th June 19
Stock Market Storm Clouds on the Horizon - 11th June 19
Is Your Financial Security Based On A Double Aberration? - 11th June 19
What If Stocks Are Wrong About Interest Rate Cuts? - 11th June 19
US House Prices Yield Curve, Debt, QE4EVER! - 11th June 19
Natural Gas Moves Into Basing Zone - 11th June 19
U.S. Dollar Stall is Good for Commodities - 11th June 19
Fed Running Out of Time and Conventional Weapons - 11th June 19
Trade Wars Propelling Stock Markets to New Highs - 11th June 19
Best Travel Bags for Summer Holidays 2019, Back Sling packs, water proof, money belt, tactical - 11th June 19
Betting on Next British Prime Minister Tory Leadership Betfair Markets Forecast - 10th June 19
How Can Stock Market Go Up When We’re Headed Towards a Recession? - 10th June 19
If You Invest in Dividend Stocks, Do This to Double Your Returns - 10th June 19
Reasons for the Success of the Dating Market - 10th June 19
Gold Price Trend Analysis - Video - 10th June 19
US Stock Markets Rally Hard – Could Another Big Upside Leg Begin? - 10th June 19
Stock Market Huge Cosmic Cluster Ahead: Buckle Up! - 10th June 19
Stock Market Higher To Go? - 10th June 19
The Gold Price Golden Neckline… - 10th June 19
Gold Price Seasonal Trend Analysis - 9th June 19
The Fed Stops Pretending - 9th June 19
Fed Rate Cuts Soon; Bitcoin Enthusiasts Join Wall Street in Bashing Gold - 9th June 19
1990s vs. 2010s - Which Expansion Will be Better for Gold? - 9th June 19
Gold Price Trend Analysis, MACD, Trend Channels, Support / Resistance - 8th June 19
Gold Surges Near Breakout - 8th June 19
Could Gold Rally Above $3750 Before December 2019? - 8th June 19
5 Big Lies About Precious Metals Investing Exposed - 8th June 19
ADL Predictive Modeling Suggests A Big Move In Silver - 7th June 19
US China Trade War Will Start a Recession, or Worse… - 7th June 19
Land Rover Discovery Sport Brake Pads Expected Life, Worn Pads Dash Warning - 7th June 19
The Post Room Selfies Fun at Meadowhall Sheffield, From Game of Thrones to Desert Island... - 7th June 19
SAMSUNG - South Korean Electronics Giant - Investing in AI Stocks - Video - 7th June 19
Gold Price Rally or New Bull Market? - 7th June 19
Digging into the Rising Gold: Trade Tensions, Recessionary Worries and Dovish Fed - 7th June 19
The Risky Stocks Big Lie That Keeps Many Investors Poor - 7th June 19
Gold and HUI Short-term Strength Is a Strong Call to Action - 7th June 19
Fear Drives Stock Market Expectations - 7th June 19 - Chris_Vermeulen
Next British Prime Minister Tory Leadership Betting Markets - 6th June 19

Market Oracle FREE Newsletter

Gold Price Trend Forecast Summer 2019

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