3 ms·

One of the goals of keeping the money supply equal to the value of assets is a stable velocity. The stable velocity might end up the more important aspect, but

One of the goals of keeping the money supply equal to the value of assets is a stable velocity. The stable velocity might end up the more important aspect, but I don't yet have a perfect intuition on how that works.

rileymat2 5y ago
How is this possible as we have increased access to credit?
- ItsMonkk 5y ago
  In a fair system with no rent-seeking, you wouldn't. If the money supply is increasing at a rate faster than assets, you would raise the interest rate.