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COVID-era inflation
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American Thinker Blog
When looking back over the last 65 years, one sees no comparable annual rate of growth in the money supply (M2).
Together with near-zero interest rates and large Fed asset purchases, it dramatically increased the money supply.
With a sharp rise in the money supply, one would expect inflation to surface because of “too much money chasing too few goods.”
However, inflation was initially muted as M2 velocity (M2V), a measure of how fast money turns over in the economy, declined sharply.
The lockdowns and disruption that accompanied the COVID-19 pandemic had the effect of forced saving on the economy, i.e.