Under these circumstances, the budget deficit, likely to amount to approximately $3 trillion, will lead to an increase in the quantity of dollars in M2 money supply of about 14%. Monetarists would argue that in time this increase will lead to the general level of prices rising a similar am...
Links to relevant FRED pages: https://research.stlouisfed.org/fred2/series/GDP https://research.stlouisfed.org/fred2/series/M2V https://research.stlouisfed.org/fred2/series/M2 Bottom line, for the US the money supply has grown just as it should, the Fed has been doing a good job o...
M2 money supply year-over-year flow versus stock. Source: Bloomberg In other words, a deflationary recession is coming, with Meyers believing it will force the Fed to return to a quantitive easing policy. “When the debt ceiling is lifted and credit-contraction leads to economic crisis... ...
if one supposes that the Fed had instead elected to maintain the growth rate of its balance sheet at around ¼% per month (as it had been doing prior to the Lehman Brothers collapse), and that the 'money multiplier' declined as it has done since then, the M2 mo...