These series grow at similar rates, at times. real m1 and real gdp percentage change annual rate This is the real income effect on money demand. After 2008, a significant divergence occurs at the same time that the Fed bought a large portion of the increase in US Treasury debt during and after the Great … More Real M1 and Real GDP percentage change annual rate
A Stable money demand, more or less. Real M1 divided by Real GDP against 3-month US Treasury Bill Rate Real M1 money as normalized by real output moves opposite of the Short Term Interest rate as in standard theory of money demand. This is the Price effect on money demand.
Real M1 and Federal Debt as percent of GDP With M1/CPI being Real M1, its relation to US Federal debt as a share of GDP implies that the Federal Reserve System appears to be printing money by buying US Treasury debt whenever the US Treasury debt goes up. This is the Fiscal Revenue effect of … More Real M1 and Federal Debt as percent of GDP
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