M3: The Money Supply Sure Doesn't Look Like Deflation

by: Tim Iacono

Not having looked at the M3 statistics in quite a while, the broadest measure of the nation's money supply that was discontinued by the government but which has been reconstructed over at NowAndFutures, it's not surprising to see that the growth rate is down sharply.
IMAGE What is surprising is that, for all the talk of deflation these days, M3 has increased by about a trillion dollars since last fall when we entered the current phase of the financial crisis.