Supposedly, we are now descending experiencing deflation,. which causes, or results from, recession.
My question is: where did the money go? We have seen major inflation over the last 5 years (housing and commodities), which is, as we know, a monetary phenomenon - the Fed has run the printing press full blast, with their 'easy money' policy.
Now, bust follows boom, and prices fall... but the money is still out there, yes/no? Demand should be constant, with boatloads of bux chasing goods.... where are all the dollars? Hw can general price level drop?