[M1 (M1SL) | FRED | St. Louis Fed (stlouisfed.org)](https://fred.stlouisfed.org/series/M1SL)
In: 0
It is a bit of a trick question. So the graph itself is kind of “see if you catch the obvious but miss the details”
[https://fredblog.stlouisfed.org/2021/05/savings-are-now-more-liquid-and-part-of-m1-money/](https://fredblog.stlouisfed.org/2021/05/savings-are-now-more-liquid-and-part-of-m1-money/)
See the explainer above from the same website which explains what happened in May 2020. The spike was caused by a redefinition of M1. There is no doubt that the US govt increased money supply overall because of the COVID stimulus package. Adding nearly 6 trillion into M2 from early 2020 to 2022 is a massive increase in money supply at the time when demand really couldn’t react due to pandemic related supply chain shocks and shutdowns.
Latest Answers