Above are 5 year charts of monetary velocity, for M1, M2 and MZM.
Let's place the current readings into historical context:
M1 has printed lower. However, it has been in a very chart decline for the last few years.
M2, on the other hand, is at multi-decade lows.
And MZM is at or near multi-decade lows as well.
Simply put, there is a dearth of transactions occurring in the economy right now. This is very concerning as we need to have money moving in order for economic activity to pick-up in a meaningful way.
