I agree with you technically speaking, but another way of thinking about it is that cashflow is really what we think of when we think "quantity of money" (Adam

I agree with you technically speaking, but another way of thinking about it is that cashflow is really what we think of when we think "quantity of money" (Adam Smith, a gold piece that sits in a chest is realy not part of the money supply, yaddayadda). Cashflow (aka NGDP) is actually way down: http://marketmonetarist.com/2012/06/19/guest-post-measuring-the-stance-of-monetary-policy-through-ngdp-and-prices-by-integral/ http://marketmonetarist.com/2012/06/19/guest-post-measuring-... ...it looks like this is the distinction you're making when you say Aggregate demand, I'm really just adding this comment to help other people better understand your comment.