/biz/ - Business & Finance

Anonymous Tue Mar 17 19:27:57 2020 No.17892780 [View]
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>>17892671
THEORETICALLY, the amount of inflation depends on both the amount of currency in circulation AND on how fast that money changes hands. I = AV
Velocity (V) is going down because everyone is staying home, not working and not buying.
The government is hoping that by increasing A by sending everyone checks (which is NOT printing additional bank notes), that they can keep inflation from going negative. The checks do not increase the amount of bank notes in circulation because of fractional reserve lending.

That's as simple an explanation as there can be.

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