/biz/ - Business & Finance

>>30359578
>velocity of money
that's just gdp divided by m1 or m2.
but yea inflation might run hot for a year but the long term trend is not hyperinflation, not even regular inflation.

>print money
>hand out a tiny percentage of it as cheques
if you and I don't get the money, and it's locked up in the financial system, how will it cause inflation?
fiscal stimulus is there as aid to make up for what was lost. further, look at it from a micro-perspective, will people buy an extra tv or extra cans of tuna because of the cheque? I don't think so, they purchasing habits will remain the same.
it will continue to do what it always has - inflate assets and "rare" items rather than everyday goods and services.
>>30324136
>>30323902
Velocity of money is just gdp divided by m1 or m2.. sounds fancy but it's not even a special indicator. and look at the long term trend, covid just accelerated it. you might get a quick inflationary rebound for a year but the trend is down.

it's true but efficiency and competition means we go to the same providers (mcdonalds, amzn) for a service that rich people own so they end up with the money anyway.
And I always thought velocity of money was such a cool indicator but it's really just gdp divided by m1 or m2

>>30245434
>massive boom
short term boom (1 year?) but the overall trend is to deflation and contraction. Fed's been trying to pump a contracting economy since at least 1997 with Greenspan. Any further back and I don't know because I wasn't old enough to pay attention.

long term trend is down.
The indicator sounds so fancy (how fast money moves, how many times it changes hands!) but it's just gdp divided by the monetary base, either m1 or m2.
Less production, less desire to consoom... GDP growth is an unsustainable ponzi who wants to live like the boomers did?