>Would you prefer.. Until we have evidence of an optimal money growth rate, I want the system to be flexible. >keep the velocity stable. Velocity is, basical

>Would you prefer.. Until we have evidence of an optimal money growth rate, I want the system to be flexible. >keep the velocity stable. Velocity is, basically, a fudge factor in the PQ = MV equation (as in, it makes the formula work). Is there any research that points to stable velocity being optimal? I think it changes drastically over time. I think you're on the right track, and "the system" could definitely use more transparency and objectivity. But I don't think there's any algorithm near ready for prime time. The economy is too complex.