/biz/ - Business & Finance

>>28198012
total money supply doesnt matter as much as the velocity of money. Velocity being how often the dollars switch hands. Currently the velocity of USD is super fucking low, like historically low. The fed fucked up the recovery by buying so many corporate bonds. The money went to corporations, billionaires, and the stock market. It didnt actually go into the economy to buy stuff. All those big companies are too scared to spend right now, theyre just holding dollars and waiting. The fed shouldve (and they fucking kept asking to do this) gotten more stimulus checks out to wagies. Those people spend shit as soon as they get it, thats what the economy needs right now. It needs money to move around, people need to fucking buy shit.

https://fred.stlouisfed.org/series/M2V