Psychology of Scarcity of Money

 as you have seen from November 2016 the money in circulation have increased from 17 lakh crore rupees to 28 lakhs CRORE RUPEES till April 2021......

because of Corona Virus Pandemic and the government also puts cagr of 9% money supply in the economy by Printing Money...... from Independence..........

but even after infusion of so much money in to the Economy by printing money.......Money in Subjective Terms is Expensive and also the Credit Growth of money given by Bank on loans  from the recent data available is only  5/6%.......

In 2007 period the Same Money was very Cheap and Credit Growth of Loans given by Banks was say around 20/21% at its peak........ even when there wasn't so much money being Printed and thrown in to the economy........

Money becomes Cheap or Expensive as per Beholder Eyes......It is a purely Psychological Play i mean Emotional Play......

When the animal spirits of human beings are High the Value  of money becomes Cheap and Money is freely Sloshing Around and every body has Money to Buy Goods and Services...... People will Save Less and Less and spend more and more without caring about the Future Safety Net......

but when the same Animal Spirit is Dampen the Value of Money becomes very High and Money is hardly rolling in the Economy because no one is Spending because of Uncertainty Ahead....... People will Save More and Spend Less......

now in the Current Scenario of Corona Pandemic and even before that i mean from 2016 onwards so much money was printed and is Sloshing Around in the Economy but hardly any Credit Growth is happening and Credit Growth is running at 50 Years Lowest LEveLs.....

so even after pumping so much money Why the Economy is not running at Full steam because of the CORONA Pandemic and Also for the Reason Psychological Animal Spirit has not been Activated....

Yes a Massive Inflation is going to start hitting us in the Coming Decade and Biggest Growth in Economy is going to come in the Near Future because what is happening right now printing money the Consequences we will 100% have to pay later on in lagging effect.......And inflation will come surely come in the form of Increasing in Assest Prices and Exponential Booming of the Economy......

So even though so much money has been printed it should be the Case that the Value of Money should Decrease but it is not happening because people are scared in fear of Spending and the only thing in their mind is to save Money.......

So more money you save and spend Less and print Less the Value of Money is High.........And of any of the above criteria is Broken eventually after a Lag Period the Excesses will Show Up and the Results will Start Vomiting because of those Excesses Done.........