Where’s the money going during recessions?

Question

It vice versa where’s it coming from when the economy is booming?

When the economy is bad, it feels like there’s not enough money to go around, but when it’s good there’s plenty.

In: Economics

Answer 1

Much of it gets pent up in assets that holders don’t want to sell, but also part of the issue is that new money isn’t being *created* through the process of banks making loans.