Monthly monetary update
Every month, the Institute of International Monetary Research produces a series of notes analysing the latest monetary trends in the world's largest economies - the USA, China, Japan, India, the UK and the Eurozone - along with an accompanying video.
If you are looking for research from previous years, please go to our Monetary Updates Archive page.
Our most recent regular monthly money note (March 2026) can be accessed here and the latest video (March 2026) here.
March 2026 Summary
In the USA commercial banks have grown strongly in recent months, with the three-month annualised rate of increase in bank deposits reaching 8% in February. A boom in money market mutual funds is also under way, as they provide the Trump administration with an easy means to finance its enormous budget deficit. As MMMFs are typically growing in each quarter by 5% or more (i.e., at annualised rates of over 21%), the “true” annual rate of US broad money growth is in the high single digits. Money growth picked up in the Eurozone in January, while it declined in the UK. Meanwhile money growth in the two big developing countries, China and India, has also increased recently. In both of them it remains much higher than in “the advanced countries” of the West and is fairly stable at the high rates. Policy-making in Japan is in turmoil, as the new prime minister Takaichi Sanae wants to boost public spending even as a surge in bond yields has imperilled long-run fiscal solvency. Overall, the message from the latest monetary trends in the leading countries would be positive for global demand and output growth in 2026, except for the new imponderables arising from the Iran war. President Trump’s behaviour continues to bewilder, but other countries press ahead with free trade agreements and indicate a preference for a rule-based international order. If it were not for the Iran crisis, 2026 might see above-trend growth (of 3½% or more) in world output.