Figure15-3Canadian Money Supply as a Percent of Nominal GDP Different measures of money supply as percentages of nominal GDP have generally increased since 1970, with the exception of M1, which decreased as a percentage of GDP between the mid-1970s and the early 1980s. The decline in M1 during that period was caused by a high and rising inflation rate. Later, when the inflation rate became low and stable, the shares of these monetary aggregates as percentage GDP again moved in the same direction.
Source: Statistics Canada.