Is There Something We Can Look at to Indicate Currency Growth?

The population over the last 50 years grows at 1.5% per year, but physical currency growth is 10.3%. How can anyone look at that and say that's not going to be quote unquote inflationary? Currency growth is geared to the overall scale of spending in the economy. So yes, when you have inflationary circumstances, you're going to have more currency outstanding. But it would be a mistake to say this is a good example of quantity theory at work where the expansion of the money supply is causing prices to go up. That would be a wrong analysis of what's going on.

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