2 ms·
Here is another one: Velocity of money. Say you have an economy (ie: Turkey) where people only use the local currency as a bridge and converts their revenue to
by csomar 4y ago
Here is another one: Velocity of money.
Say you have an economy (ie: Turkey) where people only use the local currency as a bridge and converts their revenue to EUR/USD as soon as they receive it. The currency will get into an inflationary spiral as the stocks of savings turn into available supply of currency.