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Money Supply as measured by M2 has grown rapidly but CPI figures have not, some have speculated that the excess liquidity has bid up real estate and stocks resulting in asset inflation rather than price inflation as measured by the CPI. How do you feel about that explanation?
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M2 Data Seasonably adjusted.
Looks to me like the increase in M2 from 2006-2007 is more or less the same as nominal GDP growth. What one would expect.