5 ms·
Increasing M2 doesn’t create inflation without an increase in the velocity of money, which has fallen off a cliff: https://fred.stlouisfed.org/series/M2V https
by quickthrowman 6y ago
Increasing M2 doesn’t create inflation without an increase in the velocity of money, which has fallen off a cliff: https://fred.stlouisfed.org/series/M2V https://fred.stlouisfed.org/series/M2V
Here’s an article from the fed about inflation and the velocity of money: https://www.stlouisfed.org/on-the-economy/2014/september/what-does-money-velocity-tell-us-about-low-inflation-in-the-us https://www.stlouisfed.org/on-the-economy/2014/september/wha...
- nine_zeros 6y agoIt doesn't create inflation as measured by CPI. It did create inflation in asset prices. How can anyone be so oblivious to it?
- onlyrealcuzzo 6y agoIt's important to note that assets are outside the "real economy". Inflation has been "stubbornly low" for a decade, and yet assets have had quite the bull market. The rate of inflation seems to have diverged between consumer goods and assets (like stocks and real estate).