There is more gil being generated but it's not being circulated very much.

On Sargatanas there is a mountain of unused materials and items rotting on the market boards. The Devs even increased the supply in patch 2.1 so it's probably going to get worse.

However, the real problem is lack of demand for anything crafted. It would be really great if the Devs and Yoshi P could create a demand for these things, such as turning in gear for influence in a zone in FFXI.