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Does the Money Supply Decrease During Recessions?

In Money Supply on March 28, 2011 by CQCA

Usually, mainstream economists worry about deflation during economic recessions. The blue line in the chart above shows the M3 money supply between 1959 and 2006. The red portions are when the United States was in an official recession. There seems to be no decrease in the money supply because of a recession.

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