Inflation- Reported And Actual

everything requires energy to be produced/delivered.
just look at the price of energy to get a good idea
of inflation. and the growth figure is dependent on
the inflation figure.

HH

OMG The ECB has just introduced negative interest rates to fight deflation and some one still thinks inflation is the problem. Well I suppose inflation is a problem when there is way too little. Across the world the Velocity of money is extremely low.......until it gets well past what it was in 2008 there is no chance of inflation. Any comment about Inflation without talking about the Velocity of money shows financial illiteracy!!
As was posted in another thread by another member:
http://www.coincommunity.com/forum/...Money-M1.jpg

Say What! Back to school with you! M0 and M1 include coins and notes in circulation and other money equivalents that are easily convertible into cash. M2 includes M1 plus short-term time deposits in banks and 24-hour money market funds. How in the world can you think M2 is the opposite of M1 when M2 includes M1?

But if you want M2 heres the graph for that one as well and it isn't too healthy either.

http://research.stlouisfed.org/fred2/series/M2V

To get inflation there has to be a high velocity of money. All the quantitative easing and other measures that have been going on have aimed at increasing the velocity of money. They haven't worked very well!!

Heres the ECBs definition of Monetary types:

http://www.ecb.europa.eu/stats/mone...hist.en.html