April 13, 2004
The Amount of Money
The transaction demand for money faces a serious real-world challenge if you check out the actual amount of money. In the latest figures, M1 is $1,188,400,000,000 and reserves are $40,971,000,000. Of the latter amount, $40,949,000,000 is nonborrowed, giving you a sense of how little borrowing from the Fed actually occurs.
The stunning fact is that currency in circulation is $714,287,000,000. If you divide this amount by 260,000,000 people, it works out to $2,747 per person.
Posted by bparke at 09:37 PM