On the diagram you can see the summations of all the amounts that flowed from and to the different entities trough the markets during 1 year (2011) inside 1 country (Belgium), all numbers are x billion EUR (source: https://ec.europa.eu/eurostat).
- On the diagram you can see the total sum of all the increases and decreases for the entire year in the grey SRC label
On average more money is created then paid off, this means the money supply is increasing forever.
In both cases the same amount of money is brought into circulation (in the example this is about 204 billion EUR in the 1 year 2011). And in both cases it ends up in the banks and/or into circulation.
- M0 = the amount of EUR in circulation at a certain time t0 (year 0)
- p0 = the size of the population at time t0 (year 0)
- M1, M2, … ,Mt are the amounts a time 1, 2, …, t (for example at year 1, year 2 etc)
- p1, p2, … ,pt is the population size at time 1, 2, …, t (for example at year 1, year 2 etc)
- i = 0.03 = the increase of the total amount of money in circulation per person