In the last few years the supply of circulation money has increased dramatically but inflation has remained low. Why?
The dollar is now worthless.
We are engaging in barter where we exchange things for things. Money is not necessary.
We are a society that likes to save, not spend.
We are holding on to dollars longer.
According to our permanent income discussion what can happen when someone receives a one-time, $500 end-of-year bonus check? [a]
100% of it will be spent.
100% will be given to a charity.
100% of it will be given to family members.
Only a small percentage of it will be spent.