Furthermore, to keep to the conservative base, I will consider
not broad money supply ($ 80 trillion), but only coins and notes in circulation ($ 5 trillion).
If one puts any stock (pardon the pun) in the notion that
broad money supply growth is generally supportive of nominal equity prices over time, then this is undeniably compelling.
We can see signs of stronger bank lending showing up in the Eurozone's
broad money supply, which increased more than expected.
Obviously, a 147 % increase in
the broad money supply since 2008 is quite a lot and it has had far - reaching effects, particularly on asset prices.
The monetary base is tiny in comparison with
the broad money supply measures.
Generally speaking, a higher real interest rate reduces
the broad money supply.
Loans, bonds, and shares have some of the characteristics of money and are included in
the broad money supply.