> Most people think that M0 is only a small factor in price increase and other factors like credit given by banks, the speed at which money moves and spending/saving behavior play a bigger role.
Well, what you seem to be describing is M2, aka actual money available for spending. Which is a rather large factor in the general price level.
Well, what you seem to be describing is M2, aka actual money available for spending. Which is a rather large factor in the general price level.