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

Born and raised in the San Francisco Bay Area, H. Pike Oliver has worked on real estate development strategies and master-planned communities since the early 1970s, including nearly eight years at the Irvine Company. He resided in the City of Irvine for five years in the 1980s and nine years in the 1990s.

As the founder and sole proprietor of URBANEXUS, Oliver works on advancing equitable and sustainable real estate development and natural lands management. He is also an affiliate instructor at the Runstad Department of Real Estate at the University of Washington.

Early in his career, Oliver 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. Prior to relocating to Seattle in 2013, Oliver taught real estate development at Cornell University and directed the undergraduate program in urban and regional studies. He is a member of the Urban Land Institute, the American Planning Association and a founder and emeritus member of the California Planning Roundtable.

Oliver is a graduate of the urban studies and planning program at San Francisco State University and earned a master’s degree in urban planning at UCLA.

https://urbanexus.com
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