Thread: Shrinking Money Supply Dampens Inflation Fears

I thought the money supply was increasing.

Shrinking Money Supply Dampens Inflation Fears - BusinessWeek

Here's another article that talks about the flood of new dollars. Did the money supply increase or not? Am I not understanding something?

Dollar carry trade may hurt U.S. economy - Sep. 22, 2009

I can see how it is confusing. I'd imagine its because M3 or physical cash (cash, savings, CD's, etc) is being used to pay off debt and "deleverage", hence shrinking the supply. My guess.