Where is Our Price Inflation?

The last several years has seen a huge increase in the English speaking North America money supply. “Huge” = trillions, not billions. Yet in spite of that, we have not seen much price inflation. Why not?

The key is velocity of money. This is how fast money is changing hands. How quickly it’s being spent. Prices rise from too much money chasing too few goods and services. What if there is lots of money, but it isn’t doing any chasing? That’s what’s been going on. So much of the new money has been parked that it hasn’t pushed up prices. Interest rates will likely be rising in the short-term (see http://gordonfeil.blogspot.ca/2016/11/dollars-dollarettes-and-interest-rates.html), but later if we have negative interest rates (see http://gordonfeil.blogspot.ca/2016/11/election-bombs-and-closing-casino.html) money should start moving according to conventional wisdom. Not so likely though, as discussed at http://gordonfeil.blogspot.ca/2016/11/election-bombs-and-closing-casino.html.