Macro Musings by Danny D

Macro Musings by Danny D

Macro Themes

Money Creation

A case study on how money supply impacts CPI

Danny Dayan's avatar
Danny Dayan
Jul 21, 2025
∙ Paid
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Money supply has been rising consistently since last year, driven by strong commercial loans and revolving credit. I decided to test the impulse to inflation. While money creation is not the only driver for CPI (given shelter lags, tariffs and tightening labor markets), it is one that has been a negative impulse and is now a positive impulse.

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© 2025 Danny Dayan
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