Question: Could this precipitous drop in the velocity of money be an effect of the sheer number of dollars printed into existence be the Fed?
RE: Could this precipitous drop in the velocity of money be an effect of the sheer number of dollars printed into existence be the Fed?
Absolutely. Money is not circulating in the economy as expected by the Fed ( in other words, it’s still not easy to get a loan ). That’s the reason why despite these QE’s, we are not seeing any inflationary effects (yet).