Quote:
Originally Posted by Firebot
|
That's the United States.
They must be using a narrower definition of M2. Statistics Canada's numbers for M2 gross show month-over-month growth in every month this year. But regardless, a one off monthly drop doesn't mean much in the wider picture. There has only been a single yearly drop in M2 in the last 50 years in Canada, so the money supply will continue to grow in 2022, just at a much slower rate.
Quantitative tightening is where the central bank rolls off its assets. It doesn't necessarily mean a contraction in the money supply, it just means that the central bank is reducing its holdings, which has the net effect of reducing the liquidity of private banks (which makes lending more expensive and stricter).
As you can see from the chart in your Wikipedia link, M2 growth has never gone negative in the US in the post-WWII period:
