Broad M2 growth has surged to the highest level in several decades.

Before rushing to inflation, we should consider a few things.

First, broad M2 growth can spike in the middle of recessions.

Also, a big factor driving the increase in broad money growth is retail money funds which are up 24% Y/Y.

Austrians have a more refined version of money supply growth which excludes several categories in broad M2 growth including MMF and time deposits.

When excluding these categories, "True Money Growth" or TMS-2 is increasing far less.

If we use the 2-year rate of growth emphasized by Friedman and Dr. Lacy Hunt, the rate of growth is even less and consistent with past recessionary periods.

Institutional money funds are up 33% Y/Y

Why do Austrians exclude these categories?

"because they do not represent a final medium of exchange (in the case of traveler's checks or MMMFs, they are ultimately redeemed for cash or checking deposits)"