Toro
Diamond Member
Yes. Although, the banking system is now creating less credit than it was. Credit is certainly tighter. Also, I am not convinced that M3 is an appropriate measure of the money supply. I tend to put more faith in M2 and MZM. But I am still formulating my opinion here.
I saw a paper a few days ago that overlaid the price of oil with M3 growth. There is a fairly significant correlation.
I don't have that graph, but I do have this one.