The total money supply across the world’s largest economies—the U.S., Euro Area, Japan, and China—has soared to an unprecedented $89.7 trillion, marking a massive $7.3 trillion increase over the past year. This surge represents the most significant spike in global money supply in three years, drawing comparisons to the drastic monetary expansion seen in the early stages of the COVID-19 pandemic.
In the U.S. alone, money in circulation has risen by $410 billion year-over-year, now standing at $21.2 trillion. To provide context, the U.S. money supply has increased by 27% since the beginning of 2020, underscoring the rapid pace of monetary expansion in recent years. This trend has contributed to a growing concern about the long-term impacts of inflation.
Since the pandemic began, global money supply has surged, driving widespread inflationary pressures. The U.S. dollar, in particular, has lost 25% of its purchasing power over the past four years, highlighting the lasting effects of increased money printing.
Despite initial claims that inflation would be “transitory,” the continued rise in money supply and its impact on prices suggest otherwise. With global money printing back in full swing, inflation remains a key concern for economists and consumers alike.
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