3 ms·
The central bank automatically equalizes over changes in money demand/velocity. That what a demand target (in the Feds case Inflation) is all about. So this act
by nickik 10y ago
The central bank automatically equalizes over changes in money demand/velocity. That what a demand target (in the Feds case Inflation) is all about. So this action might increase velocity/decrease money demand, but it will not have a larger effect on Aggregate Demand.