Edmund Simms's avatar
$27.8m follower assets
Monetary impulse is slowing

The monetary impulse estimates the rate of money creation using the annual change in total central and commercial bank assets. It is slowing down.
Sidni Standard's avatar
could you explain this a little more? Does this refer to the money printer, buying gold, etc?
Edmund Simms's avatar
@sidnistandard One estimate for the amount of money out there is the total value of all bank assets. If it's growing, the amount of money out there is growing. This chart shows that while banks' assets are still increasing, the pace at which they are growing is slowing.
Sidni Standard's avatar
@valuabl ahh I see. It's kind of mimicking what was going on in this graph between '08-'10. This is a cool way to visually see that we're in a recession!
Conor Mac's avatar
Healthy or?
Edmund Simms's avatar
@investmenttalk, it's neither healthy nor unhealthy. It means that the rate at which banks create new money is slowing and is in line with its long-term but cyclical average. As growth in bank assets slows, so do bank reserves, driving up interest rates. If bank asset growth continues to slow, interest rates should, all else being equal, rise.
Conor Mac's avatar
@valuabl Great explanation, thanks Edmund.
ThomasFJE's avatar
Should be much lower…
Edmund Simms's avatar
@smh How come?

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