this link -- http://mises.org/story/3556
claims that "in December of 2007, currency was $763.8 billion, while, as just noted, the monetary base as a whole was $836.4 billion."
i am not sure but i assume the fed reserves portion of the monetary base is physical currency too. paper dollars and coins, iow.
the above posted link also states "
as of December 2007, the total money supply of the United States, i.e., currency plus bank deposits of all kinds that are subject to the writing of checks, including the making of payments by debit card, was $6901.9 billion;[3] at the same time, the monetary base was $836.4 billion. Accordingly, the amount of fiduciary media in the United States was equal to the difference, which was $6065.5 billion. This was the sum of money representing transferable claims to standard money,...."
as i understand this ( i assume it isnt a lie , i am not sure) the vast majority of dollar transactions are performed not with dollars but with 'promises of dollars', what i guess is known as dollar-credit.
it is also my understading of this information that the true currency isnt much much of an economic good, in that it is printed paper with different numbers and base metals said to represent portions of the numbered papers value. iow, basic currency expansion rate could probobly be not too far off from the credit expansion rate???
the mises sites have stated that it is credit expansion that creates business cycle faux-pas.
is their a collection of economic indicators other than money supply figures that show where dollar-credit creation can be directly linked to economic cycle faux-pas?
something like inventory liquidations per quarter or transport ships stuck at dock, idle factories, etc and their funding sources?
thanks