[vishnugupta]

For one concrete data point refer to this[1] chart which tracks the mortgage backed securities (MBS) held by the fed. This is fed creating money (for the lack of a better word) to indirectly fund home ownership. What started out as a short term measure to avoid a Great Depression post 2008[2] crisis ended up being a more permanent policy fixture. That is about $2.7T of new money created since 2008. Let that sink in.

2010s were quite unprecedented years in terms of new money (and hence new debt) created. The repercussions were everywhere; crazy VC funding (Uber/Airbnb etc.,), insane tech salaries, record high stock markets and so on.

[1] https://fred.stlouisfed.org/series/WSHOMCB

[2] https://home.treasury.gov/data/troubled-assets-relief-progra...

[syntaxing]

Is 2.3T a lot? Since the US GDP is about 23T, is there a situation where printing that much money is a net positive thing?

[NhanH]

Money supply needs to couple with velocity for the comparison with GDP to make sense (think of the degenerate case, you theoretically could use like a single dollar to handle the entire economy, if it moves fast enough).

The easier comparison would be to compare the money supply growth against the GDP growth and see if they differ by much. I have neither number on hands, so someone else might be able to provide them.