nice article Norm. I agree that the shift to digital transactions shouldn't hurt the Cdn banks.

thanks for your comment.

There is virtually no inflation risk on the horizon. Indeed, the risk is entirely one of low inflation, or in a worst case, deflation;

Thanks for your comments.

The US has always had a problem dealing with its poor.

The problem became more exaggerated by recent events, including the covid recession.

a situation unlike no other

thanks

I agree the outlook is very risky.

thanks for your comment

I beg to differ. The risk we face is deflation, not inflation.

NIce column

Your point on MV=PY is instructive. Could it be the defn of money has changed. Really all you can say is that the velocity of money, conventionally defined, has fallen.

But what about money substitutes, which move far beyond the conventional defn.?

A related point. It is often not realized that when the demand for money falls, Ceteris Paribus, the money supply shrinks. (the money stock is determined at the intersection of the supply and the demand curves)

That is, the money supply is a function of both the demand and the supply of money.

Your conclusion on the macro effects are right on.

nice comment, but depressingly accurate

nice piece.

Great series of insights Gary.

All the best,

Arthur