PE47: How fast does the money printer go brrr... really? (II)

1 year ago
18

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This is the forty-seventh video installment from Porkopolis Economics, covering macro and money, from the creator of the Crypto Voices podcast.

Contents
00:00 Intro
00:47 Small numbers long ago, vs. big numbers now?
03:28 All-time trendline
04:50 Pre-2008 trendline
09:00 Post-2007 trendline
13:00 Always comes back to compound growth rate
13:30 Fed balance sheet CAGR
14:25 Rule of 72 (Easiest way to doubling time!)
17:43 All-time trendline CAGR
20:58 Pre-2008 trendline CAGR
21:50 Post-2007 trendline CAGR

Here we look at the 108 year, 5,654 week history of the Federal Reserve and its balance sheet. How fast does it grow, what is its trendline? In addition to last video, what is the trendline of the Fed's balance sheet before 2008? What about the post-2007 trendline?

All-time trendline coefficients:
y = a * EXP (b * x)
y = y-intercept * EXP (slope * x)
y = 2.26 * EXP (0.13% * x)

Pre-2008 trendline coefficients:
y = a * EXP (b * x)
y = y-intercept * EXP (slope * x)
y = 2.74 * EXP (0.12% * x)

Post-2007 trendline coefficients:
y = a * EXP (b * x)
y = y-intercept * EXP (slope * x)
y = 0.06 * EXP (0.21% * x)

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