Murray Rothbard

True Money Supply

Metric by Murray Rothbard And Joseph Salerno
Joseph Salerno
Component M1 M2 M31 TMS FRED Series
Currency in Circulation CURRNS
Demand Deposits DEMDEPNS
Other Liquid Deposits MDLNM, SAVINGNS, OCDNS
Traveller's Checks1
Retail MMF Balances
Small-Denomination Time Deposits (<$100k)
Large-Denomination Time Deposits (>$100k)
Institutional MMF Balances
Repurchase Agreements
Eurodollars
U.S. Government Deposits at FED WTREGEN, GDBFRW
U.S. Government Deposits at Commercial Banks BOGZ1FL763123005Q
Foreign Deposits at FED WDFOL
Foreign Deposits at Commercial Banks DDDFOINS, DDDFCBNS

1. Discontinued

What is True Money Supply?

The True Money Supply (TMS) is a measure of the money stock developed by Murray Rothbard and Joseph Salerno. Unlike M1 and M2, TMS exclusively tracks money available for exchange without delay or penalty. This distinction has significance, as only immediately available money affects prices and economic calculation.

TMS provides clearer insight into inflation than price indices like the CPI, which are influenced by non-monetary factors.

TMS data isn't widely accessible. This website aggregates the necessary components from the FRED API, providing a current and convenient way to track TMS.

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About TMS

About Me

Money Growth & Inflation

The equation of exchange (MV = PQ) holds that money supply times velocity equals the price level times real output. New money is 'absorbed' by either (1) real GDP growth, (2) velocity changes, or (3) price inflation. That is, whatever growth and velocity don't absorb manifests as inflation. In a productive economy with a stable money supply, prices would fall.

Where Money Growth Goes

Price Level