Bank reserves are strictly M0. As for inflation -- it's a really slow system that we're looking at here, the inflation depends on where the money ends up, henc

Bank reserves are strictly M0. As for inflation -- it's a really slow system that we're looking at here, the inflation depends on where the money ends up, hence the stock market behaviour, but over time it will cause inflation elsewhere. We look back at historical periods like Weimar, like 1929 as if they happened instantly. But to the people trapped within those moments, they happened day by day, slowly playing out. Irving Fisher is notorious not because he called an end to the crash in 1929, but because he repeatedly called an end to the stock market crash for the next two years. It would take 3 years for the immediate effects triggered by the US crash in September 29 to play out, and arguably another 20 or more years for the longer term ones. The US money supply actually started shrinking 6 months before the crash as it happened. This is all just the beginning.