Money Creation

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Written By H. Pike Oliver

ECON - 2009-10-10 - Money supply in the USA On October 9, 2009, The Calafia Beach Pundit (Scott Grannis) posted this chart and an explanation at his blog (http://scottgrannis.blogspot.com/). It illustrates the dramatic expansion of the monetary base in the USA during the year since the near collapse of the financial system. The Monetary Base (currency plus bank reserves), is now at an all-time high.

Grannis points out that all this money creation has yet to create inflation because most of it went into newly-created bank reserves that remain on the Federal Reserve balance sheet. Despite the increase in the money supply, there is little new lending. The big question is whether the Federal Reserve will be able to shrink the money supply as we move into recovery. If not, it seems like are in for some dramatic inflation.

H. Pike Oliver

H. Pike Oliver focuses on master-planned communities. He is co-author of Transforming the Irvine Ranch: Joan Irvine, William Pereira, Ray Watson, and THE BIG PLAN, published by Routledge in 2022.

Early in his career, Pike worked for public agencies, including the California Governor's Office of Planning and Research, where he was a principal contributor to An Urban Strategy for California. For the next three decades, he was involved in master-planned development on the Irvine Ranch in Southern California, as well as other properties in western North America and abroad.

Beginning in 2009, Pike taught real estate development at Cornell University and directed the undergraduate program in Urban and Regional Studies. He relocated to Seattle in 2013 and, from 2016 to 2020, served as a lecturer in the Runstad Department of Real Estate at the University of Washington, where he also served as its chair.

Pike graduated from San Francisco State University's urban studies and planning program and received a master's degree in urban planning from UCLA. He is a member of the American Planning Association and the Urban Land Institute and a founder and emeritus member of the California Planning Roundtable.

https://urbanexus.com
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