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My proposal would not be run under the current policy regime, and you're absolutely right: trying to forecast inflation from (part of) my proposal using M0 from
by erichocean 13y ago
My proposal would not be run under the current policy regime, and you're absolutely right: trying to forecast inflation from (part of) my proposal using M0 from the current policy regime isn't relevant. I'm not even clear why we're discussing it at all.
- yetanotherphd 13y agoThe theoretical and empirical relationship between changes in the money base (M0) and inflation are well established, and based on very simple intuition: changing the amount of hard money by a factor of 3, results in a change in the value of money by a factor of 1/3. I can't educate you on macroeconomics in this thread, please refer to any macro textbook.