Re:Making sense of what’s going on in the housing market
by quickthrowman on Wednesday April 21, 2021 @02:25PM
(#26893547)
> This seems insane that a unit of account can just grow 25% in one year with no signs of stopping with no consequences
The equation of exchange is MV=PQ, not M=PQ. The velocity of money (V) is falling right now as the money supply (M) is growing, that’s why increasing the money supply hasn’t had consequences (yet).
The equation of exchange is MV=PQ, not M=PQ. The velocity of money (V) is falling right now as the money supply (M) is growing, that’s why increasing the money supply hasn’t had consequences (yet).
https://en.m.wikipedia.org/wiki/Equation_of_exchange