Even if the purchasing power is rising, without the increase of velocity of money, there will be no inflation and sustained economic growth.
Circulation/velocity of money measures the interval between money transactions, decline means less transaction is taking place and the interval between money transactions is getting longer.
According to the July 2020 Senior...
How effective are Fed's monetary policies and tools?
Fed has three simple goals- Grow GDP, keep inflation rate steady and keep the unemployment rate low.
Some argue that Fed's perceived power over the market was exposed during several occasions-
#1. During the 2008 in the midst of sub-prime mortgage crisis, the market continued to plunge despite the Fed's...