Today the Fed released the February money supply data, and there were no unwelcome surprises. M2 continues to shrink relative to the economy, and that’s the reason inflation is likely to continue to fall. Chart #1Chart #1 shows the recent history of currency in circulation, which represents about 10% of M2. It rose at a fairly constant 6.6% annual rate from 2010 until early 2020, then surged (as
