2 ms·
Sorry, but "all else equal" doesn't, and can never, exist. Any way to expand M2 itself changes the velocity of money, inflation expectations, and (probably most
by rory 5y ago
Sorry, but "all else equal" doesn't, and can never, exist. Any way to expand M2 itself changes the velocity of money, inflation expectations, and (probably most importantly) the expected future value of the US economy.
Your claim was:
> It's a drop relative to what it would be if the money supply had not increased accordingly
If the money supply hadn't increased, those secondary effects would not have happened, so any idea that M2 maps linearly to inflation net unrelated climate effects is just incorrect. If you still believe it's true after that explanation, please back the claim with some actual information.
- quantumBerry 5y ago>If the money supply hadn't increased, those secondary effects would not have happened I can't tell if this is supposed to be sarcasm, humor, or merely a hilariously misinformed view of the effect of the pandemic on spending and lending behavior (which apparently you think happened instead due to the change in money supply). >Sorry, but "all else equal" doesn't, and can never, exist. Which is my point! As your paper explains, these secondary effects from pandemic and other causes help explain the expression of inflation beyond the money supply effects.