Economists Alarmed by Tumbling Money Supply and Inflation Forecasts.
Economists who correctly predicted high inflation during the pandemic are now sounding the alarm about collapsing money supply growth in the UK, eurozone, and US, which they see as a warning of recession and deflation. Monetarists argue that growth and inflation are a function of the quantity of money in circulation and its velocity, which are now pointing to a slump. Central bankers have raised interest rates too far, and if the monetarists are proved right again, they say there should be a "clear out" of officials.