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Dec 2007 9 billion U.S. dollars in circulation Dec 2007 9 billion U.S. dollars in circulation

10-03-2008 , 06:13 PM
According to this article from the Federal Reserve Bank of New York there was $829 billion total U.S. Dollars in circulation during the Dec of 2007 and the majority of it was held outside the United States.

http://www.newyorkfed.org/aboutthefe...int/fed01.html



So if this is true and this bailout package is for $800 billion dollars then does this mean the money supply will effectively double? Will this mean the long term value of the dollar will be cut in half?


Help me to understand. I am an economics noob.
10-03-2008 , 06:17 PM
that figure is for currency, which is printed bills

most dollars only exist electronically

see this page: http://www.newyorkfed.org/aboutthefe...int/fed49.html

m2 money supply in April was $7.7 trillion
10-04-2008 , 07:27 AM
And the M3 is .... oh that's right they stopped publishing it. I'm sure that's only because it was so well under control.
10-04-2008 , 07:29 PM
The money supply is an extremely complex subject. There are many measures of the money supply, and people are constantly arguing about which is the best measure for what purposes. There's M1, M2, M3, MZM (Money of Zero Maturity), TMS (True Money Supply), AMS (Austrian Money Supply), Rothbardian Money Supply, and on and on.

Whichever measure you use, however, the pattern is clear.
10-05-2008 , 07:44 AM
whats the pattern boro?
10-05-2008 , 03:26 PM
They keep expanding it.

      
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