Rich – I was being very simple in my “circulation” comment. Money being spent in the economy. Not money available. So maybe I’m misusing the word “circulation” in the finance world. Maybe the right word is “velocity”?
As Eugene says, money in consumers’ hands and spending the money. That explanation makes some sense to me. Unless the money is printed AND spent (circulated?) then you have inflation.
Sorry, Rich. Every time I think I got it, I just get more confused.
