4 ms·
Money supply, velocity, and GDP growth* Just wanted to add, if all else is held equal amount those factors, growth in gdp, without and subsequent changes in th
by wbsss4412 5y ago
Money supply, velocity, and GDP growth*
Just wanted to add, if all else is held equal amount those factors, growth in gdp, without and subsequent changes in the money supply or velocity, would lead to deflation.
- whimsicalism 5y agoYep! Price Level = Money Supply * Velocity / Real GDP If you improve real output without an increase in money supply or velocity, things'll get cheaper.
- dragonwriter 5y ago> Money supply, velocity, and GDP growth consumer price level should be proportional to Money supply × velocity ÷ (real GDP + value of net consumer imports)