On a quick drive back from the nearby hardware store, I heard some interviewer on Bloomberg Radio ask some expert “Where Does All The Money Go?” A better query would have been “How does all the new money circulate? Into what channels might it go for immediate use and, perhaps, to cause inflation; and where might it go only to sit idle without productive purpose?”
May I suggest that the interviewer read the book subtitled An Essay in Circulation Analysis, shown here on the right sidebar?
[CWL 15] Lonergan, Bernard (1999), Macroeconomic Dynamics: An Essay in Circulation Analysis, ed. Frederick G. Lawrence, Patrick H. Byrne, and Charles Hefling, Jr., vol 15 of Collected Works of Bernard Lonergan, (Toronto: University of Toronto Press) [CWL 15]
The channels of the Diagram of Rates of Flow below show how the money circulates.
More positively, the channels account for booms and slumps, for inflation and deflation, for changed rates of profit, for the attraction found in a favorable balance of trade, the relief given by deficit spending, and the variant provided by multinational corporations and their opposition to the welfare state. [CWL 15, 17]