Money Supply Growth Outpaces GDP Across G7 Economies
The gap between money creation and economic output is widening, with Canada’s M2 money supply up 368% since 2004 while its economy grew just 159%.
Money supply expansion is increasingly outstripping economic growth in major developed economies, driving a widening gap between liquidity and real output.
Data since January 2004 shows Canada recording the largest M2 increase among G7 nations (+368%), far outpacing its 159% economic expansion. The United States follows with M2 up 279% versus nominal GDP growth of 171%. In Europe, France’s M2 surged 258% (GDP +84%) while the Euro Area saw a 211% money supply jump against 102% GDP growth.
Japan registered the slowest expansion, with M2 rising 90% and the economy growing just 25% over the same period. The trend highlights persistent monetary stimulus outpacing underlying activity.
Source: The Kobeissi Letter