[mcnees287]

MV=PQ

Where, M=money supply V=times money changes hands in one-year P=price level Q=GDP

The assumptions for this model are often missed, and include:

    1.No excess reserves
    2.No international leakages, ie.,no carry trade. 

These two assumptions are unlikely to be true in these times.

Current excess reserves are nearly $1.9 Trillion

Excess Reserves Source (FRED): http://research.stlouisfed.org/fred2/series/EXCRESNS

[fauigerzigerk]

So either the entire QE money has gone into reserves or banks are parking money at the Fed that they used to lend to each other until 2008. I wonder which one it is.