Is Deflation A Risk ?
Thus far, the Fed's massive monetary base expansion with a balance sheet exceeding $4 trillion
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| Federal Reserve Balance Sheet |
and largely sits as excess reserves at the Fed, and as such monetary velocity continues to make 50-year lows. Thus, there has been very little real goods inflation, traditionally driven by a demand-pull dynamic.
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| Excess Reserves |
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| Monetary Velocity |
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