Yep, “velocity” of the money supply, or the rate at which it changes hands, has slowed considerably, thus offsetting the growth in money supply, however measured.
The original monetarist, Milton Friedman, claimed velocity was fairly constant over time, which led him to state that money supply growth over a certain range of 2 to 4 percent or so each year, would lead directly to inflation. As Mish has so abundantly shown, this has not happened and is not about to happen. Too bad Milton is no longer around to defend, or explain, his thesis.
