How Much Money Is In The World?
This is a very interesting question. Since everything seems to be running on money, it’s interesting to know how much money is in the world, after all.
When you look up Google for the information, surprisingly there is very little information on the subject.
The available information does not lead us to an authoritative single figure that answers how much money is in the world.
What we get on the Internet are different versions and estimates offered by some CIA, and some economists.
Even these estimates are so few that they don’t lead us anywhere. But we must explore and find out how much money is in the world. Let’s look at the available figures.
Figures That We Have From Different Sources
By talking about money, if we refer to the total cash in circulation, we have information about the US and most of the countries in the world. For example, the US Federal Reserve website said that $1.5 trillion in notes and coins were in circulation in 2017.
According to Bank for International Settlements data, about $5 trillion worth of currency notes and coins were in circulation in 2017. Now, country to a country basis, the data of total banknotes and coins in circulation are mostly available.
But perhaps there is no single agency responsible for tabulating the data. So we never know for sure how much money is in the world.
Countries In Trouble Don’t
Report Financial Details
Even if we take the figures available with the central banks in different countries, it is not possible to tell exactly how much money is in the world. Why?
Because some other countries in the world are always in political and economic transition and the data about the total currency in circulation is either not available or is not authentic.
Take, for example, North Korea. For the last many decades, nobody has a clear knowledge about anything in the country, far less about its economy or the currency in circulation.
Syria has been at war for nearly a decade now. There is hardly any information available about its economy or the currency in circulation.
At any given point in time, there are 5 to 10 countries in such bad shape that getting authentic about their banking system is not possible. So, if we don’t know how much money is lying in those countries, there is no way we can calculate with accuracy how much money is in the world.
Money That Can’t Be Quantified
Then, money in circulation is not the only money that the world has. Today, there are hundreds of other ways to keep money than banknotes or coins.
For example, the government sells gold bonds that have a value but it is not represented by notes or coins nor even by physical gold that can be measured for its value in terms of money. It is money worth the gold it claims to equivalent to. But it is neither in gold nor in money.
Does it sound unclear and fuzzy? Yes, the world of money and wealth is extremely complicated and very hard to calculate all the money that is there.
For example, there are digital money and digital banks that do not use any kind of currency notes.
A term called broad money is used to refer to money that lies outside the realm of physical currency notes and coins.
But it is very difficult to quantify the broad money that exists in the world. According to the CIA, the world had $80 trillion money in 2017.
But even this figure is debatable, and in all fairness, this is not how much money is in the world. The actual amount could be double or even more.
Finally, how much money is in the world? You will never get the exact figure because people like to be secretive about the money that they have.
Then, there are many types of money including black money and fake money, which can never be calculated in clear terms.
Some governments are known to manipulate their financial systems by printing and introducing more money than their economy is worth it.
The figures of $5 trillion of currency notes in circulation and $80 trillion as broad money come from American sources. These figures have not been endorsed by any banking system.
So, there is no final word on how much money is in the world.
If you want to read more about how much money is in the world of finances in general, you can read here.