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RE: The Cryptocurrency Market is Teeny-Weeny!
Nice article. This is what I try to keep in mind every time I put a bit more money into cryptos. Just the other day I was trying to figure out how many Norwegian Kroners are out there, just as a fun comparison. I think I found that current M2 money supply (the right one?) is 2,081,927 Million. But this means about $247 trillion. Can that be right? What is the 3.08 trillion monetary base on that chart saying? I think I'm doing something wrong.
The monetary base I refer to here is the St. Louis Adjusted Monetary Base.
From the Federal Reserve's database:
"US M1 includes funds that are readily accessible for spending. M1 consists of: (1) currency outside the U.S. Treasury, Federal Reserve Banks, and the vaults of depository institutions; (2) traveler's checks of nonbank issuers; (3) demand deposits; and (4) other checkable deposits (OCDs), which consist primarily of negotiable order of withdrawal (NOW) accounts at depository institutions and credit union share draft accounts. Seasonally adjusted M1 is calculated by summing currency, traveler's checks, demand deposits, and OCDs, each seasonally adjusted separately."
"US M2 includes a broader set of financial assets held principally by households. M2 consists of M1 plus: (1) savings deposits (which include money market deposit accounts, or MMDAs); (2) small-denomination time deposits (time deposits in amounts of less than $100,000); and (3) balances in retail money market mutual funds (MMMFs). Seasonally adjusted M2 is computed by summing savings deposits, small-denomination time deposits, and retail MMMFs, each seasonally adjusted separately, and adding this result to seasonally adjusted M1."
US M1 + US M2 ≈ Discontinued US M3
US MZM = US M2 - "small-denomination time deposits plus institutional money funds."
Norway M1
Norway M2