The Eurozone money supply as measured by the True “Austrian” Money Supply (TMS), our preferred money supply metric, was up marginally in August, the latest monthly reporting period, posting a year-over-year rate of growth of 6.0%. Though up 10o basis points from its most recent April low, the Eurozone's TMS year-over-year rate of growth is down 230 basis points (28%) from its April 2013 high. While this is not exactly a punk rate of growth, it has clearly been unable to move the Eurozone's price inflation needle. And this, to central bankers schooled in Keynesian economics, is a no-no, for it raises the specter of deflation and recession.
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