Global money supply flashes surprise slowdown warning

Fed Chairman Jay Powell does not pay attention to monetary data, and could be caught badly off guard
Fed Chairman Jay Powell does not pay attention to monetary data, and could be caught badly off guard Credit: Andrew Harrer/bloomberg

Key monetary indicators in the US, Europe, Japan, and China are flashing signals of an economic slowdown later this year, raising fears of a global recession in 2019 and a stock market slump without a shift in policy. 

Monetarist experts warn that the global money supply is slowing much faster than widely appreciated, suggesting that the shift away from quantitative easing by the major central banks is already starting to have profound consequences.

The data appear incompatible with forecasts by the International Monetary Fund and other global bodies for a synchronized global upswing this year.

The growth rate of the ‘broad’ M3 money supply in the US  - covering a wide range of deposit accounts...

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