/biz/ - Business & Finance

Anonymous Mon Feb 22 16:07:08 2021 No.29411909 [View]
File: 122 KB, 961x860, velocity of money.jpg [View same] [iqdb] [saucenao] [google]

>>29410454
>when velocity of money speeds up
This doesn't make sense. "Velocity of Money" can't be measured directly. Its just a ratio:
V = GDP / Money Supply

So to think velocity will increase means GDP has to go up bigly, or M2 has to go down, or both at the same time. How are either of those things going to happen?

>Buying commodities, constructing infrastructure, paying salaries etc.
All that money is available NOW to spend. Its the M2. What do you think needs to change such that it gets spent?

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