So I’m still learning more and more about the Austrian School, but I have a question that I don’t necessarily know how to find out for myself. A while back I read or heard somewhere, where Milton Friedman said that the money supply should be increased I believe it was 6% each year or something like that. My question is, how can I find out how much percentage wise is the US Dollar inflated each year and what was the percentage it was inflated in 2007? And is there some type of term they use to refer to this percentage of yearly inflation?
m0,m1,m2,and m3 are the numbers you want. m3 is the total supply of money in the US. The others are subsets of the total. Unfortunately after BB became the Federal reserve chairman the federal government quit reporting M3. They said it was too expensive to compile the data; of course it’s not too comforting if the government doesn’t actually know how much money is in circulation. Alternately we could assert they quit reporting the data to hide inflation.
Someone compiled their best-guess estimate of current M3 using historical data (i’ll see if i can find that graph for you). If I remember correctly it shows the money supply growing at 16~18% per anum.