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Dumb question: wouldn't increased corporate profits be an anti-inflationary measure longer-term due to decreased monetary velocity resulting in less effective m
by Nasrudith 3y ago
Dumb question: wouldn't increased corporate profits be an anti-inflationary measure longer-term due to decreased monetary velocity resulting in less effective money in the economy? Lower strata spend a higher percentage of their money than higher ones, thus making money higher velocity.
- FollowingTheDao 3y agoNot if people are going into debt buying things they need and then cannot pay off those debts. (This is screaming a future recession to me BTW) Large Bank Consumer Credit Card Balances: Total Balances https://fred.stlouisfed.org/series/RCCCBBALTOT https://fred.stlouisfed.org/series/RCCCBBALTOT Delinquency Rate on Credit Card Loans, All Commercial Banks https://fred.stlouisfed.org/series/DRCCLACBS https://fred.stlouisfed.org/series/DRCCLACBS