Exactly right. Macro economics 101 provides the identity MV = PQ where M is the money supply, V is the velocity of money, P is the price level, and Q is nat

Exactly right. Macro economics 101 provides the identity MV = PQ where M is the money supply, V is the velocity of money, P is the price level, and Q is national output. So it's true that if you hold V and Q constant, then an increase in M will lead directly to increasing prices. But in the chart linked below, you can see that the V fell off a cliff at the same time M increased. https://fred.stlouisfed.org/series/M2V https://fred.stlouisfed.org/series/M2V Looks more deflationary than inflationary to me.