...And It May Not Be As Easy As It Seems

Despite the sluggish economy, many mainstream monetarists argue that monetary policy is excessively easy, increasing the risk of accelerating inflation down the road. They note that the Federal Reserve has been pumping reserves into the system at a rapid rate, causing the monetary base (bank reserves and currency in circulation) to surge at a 10% pace and M1, the narrow money supply, to explode at a 14% annual clip over the past six months.

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