Quote:
Originally Posted by opendoor
They're not removing money from the market; the aggregates are just growing more slowly.
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Wrong as well
https://schiffgold.com/exploring-fin...over-12-years/
https://tradingeconomics.com/canada/money-supply-m2
Quote:
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Money Supply M2 in Canada decreased to 2367102 CAD Million in July from 2367260 CAD Million in June of 2022. source: Statistics Canada
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YOY, if we are in a prolonged period of quantitative tightening, you will eventually see a yearly decrease in money supply. The whole purpose of quantitative tightening is to shrink the money supply.
https://en.wikipedia.org/wiki/Quantitative_tightening
https://www.bankofcanada.ca/2022/04/...-floor-system/
BoC has this policy as of April 2022.