Oh, it’s definitely far bigger than GDP. Not all financial activity factors into GDP but it’s all part of the general movement of money that factors into inflation.
A lot of money is used for things that aren’t counted as “production”, like investments or used goods.
More than half of the worlds trade is conducted in dollars and there’s even larger flows of money involved in foreign exchange on a daily basis.
There’s just so much money churning around that reducing the supply by $300B isn’t a big dent, particularly when most of it’s already effectively out of circulation.
The ~$200 a day figure is right from bls and tracks consumer spending, notably including housing costs. https://www.bls.gov/cex/.
It’s about $100 a day if you remove housing and transportation. About $25 on food and $10 on “fun” a day, with $16 of that food being consumed groceries.
Oh, it’s definitely far bigger than GDP. Not all financial activity factors into GDP but it’s all part of the general movement of money that factors into inflation.
A lot of money is used for things that aren’t counted as “production”, like investments or used goods.
More than half of the worlds trade is conducted in dollars and there’s even larger flows of money involved in foreign exchange on a daily basis.
There’s just so much money churning around that reducing the supply by $300B isn’t a big dent, particularly when most of it’s already effectively out of circulation.
The ~$200 a day figure is right from bls and tracks consumer spending, notably including housing costs.
https://www.bls.gov/cex/.
It’s about $100 a day if you remove housing and transportation. About $25 on food and $10 on “fun” a day, with $16 of that food being consumed groceries.