St. Louis Fed / Where is Inflation?
The monetary base has increased at a rapid pace over the past two years. Why has this not lead to greater inflation? The answer lies in the declining velocity figures. Without a pick up in velocity (the frequency at which money exchanges hands) it is hard to imagine inflation taking off. ![monetary base](http://174.122.176.219/~valeofa/dataconversion/wp-content/uploads/st-louis-fed-where-is-inflation/monetary-base-300x272.jpg)