The seasonally adjusted data (in billions) for M-1 for the two-month periods from January 2008 through May 2009 are as follows:
During the period September 2008 through May 2009 M-1 experienced a large percentage increase. What subsequently happened to the rate of change in M-1? What
is the inflationary implication of the change in M-1? Have consumer prices reacted as you would have anticipated?