There are several definitions of money supply (Spanish link), but let´s focus in M1. M1 represents the total of all physical currency part of bank reserves plus the amount in current accounts. If we want to obtain data series for M1 we can go to ECB and look for data series. Here we can see the evolution of M1. In fact we have moved up from 3700 at the beginning of 2007 to 4700 now (27% more). Australia for the same period has changed from 204 to 251 (23% more), Switzerland from 280 to 421 (50% more), Canada from 9.9 to 13.1 (32.3% more)...
The currencies have also changed, for instance EURAUD at the beginning of 2007 was worth 1.667 and now is worth 1.4232 (15% EUR down), EURCHF from 1.6082 to 1.3318 (17% EUR down), EURCAD from 1.5409 to 1.319 (14% EUR down)...
To sum up, we have seen that all countries have increased their monetary based in the crisis around 1/3, which is a lot (it´s logical to think that we will find an awful inflation in the future), but also that there is not a clear correlation between these changes and the currency change.
19/8/2010
