Please, acknowledge the source of the chart as “IIMR nominal income and money growth chart, 1981-2018. From“. Click here to find out more about the effects of changes in money growth in prices (CPI and asset prices) and the business cycle. Click on the following link to download the source data as an Excel file.

M3 Data from National Central Banks and Nominal GDP Data from various sources.

Money determines income and the change in prices.

The chart above shows the average annual % change in quantity of money, broadly-defined, and nominal national income (or nominal GDP) in the various countries, 1981-2018. The relation between changes in the amount of money and changes in nominal income is quite evident in the data, and it does hold in very different economies all across the world.

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