I haven’t looked, but is that the result of QE (i.e., look at M2 minus the base)? I don’t think the ECB grew its balance sheet as much. If it’s the other components that grew, all I can think of is the housing market probably resulted in some decent debt growth.
That is the question, it’s either due to QE, performed in a different way; or, US banks extended loans guaranteed by the government which boosted M2. The latter didn’t happen in Europe as far as I know.
I don’t think QE does anything, so I haven’t paid attention. But from what I remember from charts from other people, Fed ran down its balance sheet and then re-expanded, ECB’s was already big going into COVID, so it didn’t do as much.
Do you know why the COVID crisis elevated M2 so much more in the US than in the eurozone?
I haven’t looked, but is that the result of QE (i.e., look at M2 minus the base)? I don’t think the ECB grew its balance sheet as much. If it’s the other components that grew, all I can think of is the housing market probably resulted in some decent debt growth.
That is the question, it’s either due to QE, performed in a different way; or, US banks extended loans guaranteed by the government which boosted M2. The latter didn’t happen in Europe as far as I know.
I don’t think QE does anything, so I haven’t paid attention. But from what I remember from charts from other people, Fed ran down its balance sheet and then re-expanded, ECB’s was already big going into COVID, so it didn’t do as much.
If the Fed buys a bond from a non-bank a deposit (M2 up) is created no?
Can you explain how "things got messed up in 2020" in Canada? A quick internet search didn't turn up anything helpful for me.
They started quantitative easing, which moved settlement balances from zero to positive.