M1 Money Multiplier

http://research.stlouisfed.org/fred2/series/MULT?cid=25 under 1. the average dollar only cycles through the economy once. is there a dynamic here that i’m missing or is this as bad as it looks? i would think that this kind of trumps a contracting credit spread…

It sounds like it is same as money velocity, which tends to go down when economic activity slows down.

all i remember is MV = PQ