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The Largest Economies and Monetary Expansion.

In Money Supply on March 19, 2011 by CQCA

 

Above is a chart of the top twenty countries by GDP and their five year monetary inflation.  The highest rate of monetary expansion took place in the BRIC countries plus Turkey.  This would indicate that their spectacular growth over the last five years may have been because of monetary expansion sending the wrong signals to entrepreneurs and investors, not real economic development.

Oddly enough, the exchange rate for Russian Rubles and U.S. Dollars on March 17, 2006 was 1 Ruble to $.0361.  The exchange rate for March 18, 2011 was 1 Ruble to $.0351.  Even though the Russian Ruble has expanded at a rate of eight times that of the U.S. Dollar, the forex market has only devalued it by one-tenth of a penny.

Sources:  Central Bank of the Russian Federation, Central Bank of the Republic of Turkey, People’s Bank of China, Reserve Bank of India, Banco Central do Brasil, Bank of Indonesia, Saudi Arabian Monetary Union, Reserve Bank of Australia, National Bank of Poland, Bank of Mexico, Bank of England, OECD, Bank of Sweden, Statistics Canada, European Central Bank, Federal Reserve System, Swiss National Bank, Bank of Japan

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