5 ms·
In theory, sure. But in practice the money supply has nearly quadrupled since 2005. https://www.investopedia.com/terms/m/m2.asp https://www.investopedia.com/te
by weberer 1y ago
In theory, sure. But in practice the money supply has nearly quadrupled since 2005.
https://www.investopedia.com/terms/m/m2.asp https://www.investopedia.com/terms/m/m2.asp
https://fred.stlouisfed.org/series/M2SL https://fred.stlouisfed.org/series/M2SL
- habnds 1y ago$1 in Jan 2005 is only 1.69 today, not $4 because the velocity of money has decreased dramatically as it has pooled towards the top of the income/wealth spectrum where it doesn't get spent or productively invested.
- scotty79 1y agoBulk of it is that, but some of it is that larger economy needs more money to run. So while there was 4 food money supply increase the legitimate demand also increased somewhat. Exact numbers might be hard to pinpoint because we tend to measure economy in dollars but still it wouldn't be $4 even if the rich didn't get disproportionately wealthy from this supply.