Between 2008 and 2013 money supply grew at 33%, while inflation remained persistently low (below 2 percent). 

Why?

Because inflation is also affected by the rate at which money changes hands in the economy (velocity), which has been falling just as fast:
![image](https://cdn.commonstock.com/c53ac0a0a77dfa97577f39b609a6215ae6822058d27e958f14444a6cadb4b5b4-1170x809.png)



Very interesting seeing the trend of the velocity of money... what possible conclusions could we draw from this?

Perhaps individuals are saving more/spending less or their incomes? Or is it just because the supply of money has grown MUCH faster than GDP?

Beaver Capital

Shouldn’t money printing cause inflation? 

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