4 ms·

> pumping metric fucking shit-tons of money into the economy will cause inflation Only if velocity stayed constant. Problem is, velocity plummeted with the lo

> pumping metric fucking shit-tons of money into the economy will cause inflation Only if velocity stayed constant. Problem is, velocity plummeted with the lockdowns. But now it might be coming back up. https://fred.stlouisfed.org/series/M2V https://fred.stlouisfed.org/series/M2V Edit: nope. Looks like GDP Now shows the GDP is still dropping. https://www.atlantafed.org/cqer/research/gdpnow?panel=3 https://www.atlantafed.org/cqer/research/gdpnow?panel=3

cloutchaser 4y ago
Ok, but how can you as a fed say that if you double the money supply the velocity will stay the same forever? This is the ridiculous issue with this MMT theory. How the hell can you be so stupid to assume that just because money velocity is slow now, and you pump lots of money into the system (actually you give it to financial companies, another red flag), it won’t cause inflation in a few years when things pick up? Especially after a pandemic?
- wronglyprepaid 4y ago
  > Ok, but how can you as a fed say that if you double the money supply the velocity will stay the same forever? It went up by 500% since March 2020 btw, not just 100%, or 200%: https://fred.stlouisfed.org/series/M1SL https://fred.stlouisfed.org/series/M1SL