China is experiencing an unprecedented expansion of its money supply. The M2 liquidity ratio has reached roughly 240% of GDP, the highest among major economies, marking a 100-percentage-point increase since the 2008 financial crisis. In dollar terms, China's M2 has grown about 500% over the same period. By contrast, the country's gold reserves have risen around 100% and its total foreign exchange reserves about 60%. For comparison, Japan's M2-to-GDP ratio stands at about 185% and the United States at roughly 70%. M2 is a key indicator of the amount of money circulating in an economy.