> What actually matters is spending Exactly right. MV = PT Where M is the monetary base, V is the velocity of money, P is the price level, and T is the rea

> What actually matters is spending Exactly right. MV = PT Where M is the monetary base, V is the velocity of money, P is the price level, and T is the real value of transactions. Central banks would love it if they could precisely control inflation by creating and destroying money. What actually happened with QE is that M increased and V decreased in almost the identical magnitude, leaving P and T virtually unchanged. Central banks have very little influence over the real economy, aside from short-term changes in interest rates.