Not exact matches
It is true the monetary base spiked during these initial rounds of QE, but the second reason QE didn't lead to hyperinflation is we live under a fractional reserve baking system whereby the
money supply is more than just the amount of
physical coins, paper
money and bank deposits in the system.
The sudden rise in settlement of Comex gold and silver futures contracts through the formerly obscure off - exchange mechanism of «exchange for
physicals» is likely just increasing the
supply of imaginary metal, the TF Metals Report's Craig Hemke writes today for Sprott
Money.
Currencies were readily interchangeable, gold anchored exchange rates and the
physical supply of gold stabilized the
money supply over the long term.
There is also the enormous outlay to build or lease each facility, set up and link the computer network, maintain
supplies, administer HR and payroll services, pay property taxes and spend
money on all the other fixed and variable costs required for running a
physical location.
M1 is a category of the
money supply that includes demand deposits as well as
physical money and negotiable order of withdrawal (NOW) accounts that have no maturity period but limited withdrawals or transfers.
The broad measure of
money supply additionally includes everything except
physical money: checking accounts, savings accounts and
money - market accounts.