We have CPI coming up in a few days, but M2 came out recently and it is worth commenting about, so let me drop some thoughts about the state of money and velocity right now and the context we are operating in. M2 grew 0.88% in February, causing the y/y change to rise to 4.88% (quarterly, however, it is 6.65% annualized). I saw somebody recently observe that money growth was about 6ish back before COVID, so this level is not very worrisome to that pundit. I think that’s wrong – not that this level is worrisome in the big picture, but the trend is bad and the current level is actually not consistent with low and stable ... (full story)