Episode Details
Back to Episodes
Why Central Banks Still Care About the Money Supply
Season 1
Episode 3
Published 1 month ago
Description
Episode 3 of Monetary Policy Explained with Fexingo tackles a surprisingly controversial question: does the money supply still matter? After decades of de-emphasizing M2 and other aggregates, central banks are paying attention again. Lucas and Luna walk through the revival of monetary analysis, using the post-2022 spike in M2 and the subsequent sharp decline as the case. They explain why the Fed and ECB are now watching money growth closely — even if they don't target it — and what the collapse in broad money growth in 2023-2024 might signal for inflation and recession risks. A concrete, numbers-driven conversation for anyone who wants to understand the quiet debate inside central banks today.