3 ms·
> You may be confusing money and capital. Money velocity is almost always good. I am not confusing anything. Increasing the velocity of money is not always goo
by chimeracoder 9y ago
> You may be confusing money and capital. Money velocity is almost always good.
I am not confusing anything. Increasing the velocity of money is not always good. In fact, under some schools of thought, long-term increases in the velocity of money are neutral-to-slightly-bad.
> If someone buys infrastructure bonds
Increasing the expense of saving capital means increasing the expense of bonds, which decreases the incentive to buy them in the first place.
> you have lots of money moving with velocity.
Uh, no, the tail end of that process does describe consumption behavior, but this situation actually has very little to do with the velocity of money, since we haven't addressed the propensity to spend that money a second time within any finite timespan.