Is There a Correlation Between Money Supply and Inflation?

velocity of money peaked in 1997, collapsed, obviously, with COVID. And that's been sort of a, you can argue one of the things the Fed has been trying to push against over time by just trying to make up for the slower velocity with just more dollars in the system. We've actually been in a 150-year persistent decline in velocity. I don't view other than that brief correlation where collapsing velocity is deflationary, there's not very strong correlation. There are multiple factors that can cause velocity to structurally go down. If you look at Japan, for example, they have lower velocity than the United States does. So, I don't really expect a huge uptrend

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