Demand And Supply Of Money

Gavekal

Louis-Vincent Gave

Research

7 Pages

Evergreen Gavekal examines why changes in money demand can be just as important as changes in money supply when evaluating markets and the economy. The piece argues that periods of rising cash hoarding can offset monetary expansion, helping explain why large liquidity injections do not always translate into higher inflation or stronger growth.

Key Takeaways

AI Capex Shock: McKinsey estimates global data center rollout will cost US$6.7trn by 2030, requiring roughly US$1.5trn annually from debt and equity issuance.
Issuance Pressure Builds: Five companies are seeking roughly US$300bn, while Alphabet’s US$85bn stock issue dwarfs Google’s US$1.7bn IPO from 2004 by a wide margin.
Defense Spending Rises: Proposed defense budgets add another liquidity draw, with US spending moving from US$1trn to US$1.5trn and Europe from €200bn to €380bn.
VIEW FULL REPORT

Join our newsletter to have all of this content + Exclusive Newsletter Bonus Content delivered to your inbox every week

Related Content

AI & Labor Markets
AI-merican Exceptionalism
Jul 2026
Global Macroeconomics
Mapping the World’s Prices – 2026
Jul 2026
Behavioral Finance
Once Bitten: Why Investors Won’t Buy Back a Stock That Burned Them
Jul 2026

The information contained in this communication is of a general nature for informational purposes only, and does not constitute financial, investment, tax or legal advice. The information contained within this communication reflects the opinions of those referenced herein, and do not reflect the opinions of The Idea Farm, L.P. and its affiliates. Such opinions expressed herein are as of the date of production and are subject to change at any time without notice due to various factors, including changing market conditions or tax laws. Where data or information prepared by third parties is presented, no representation, warranty, or undertaking, expressed or implied, is given to the accuracy or completeness of such information by The Idea Farm, L.P. or any other person. While such sources are believed to be reliable, The Idea Farm, L.P. does not assume any responsibility for the accuracy or completeness of such information and does not undertake any obligation to update the information contained herein as of any future date. Any links to third party websites are offered only for use at your own discretion. The Idea Farm L.P., and its affiliates, are separate and unaffiliated from any third parties listed herein and are not responsible for their products, services, policies or the content of their website. All investments are subject to varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy or product referenced directly or indirectly in this communication will be profitable, perform equally to any corresponding indicated historical performance level(s), or be suitable for your portfolio. Past performance is not an indicator of future results.

Scroll to Top