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A comment on The rise and fall of Cathie Wood, controversial Wall Street investor. Parent comment

Re:The rise and fall of Cathie Wood, controversial Wall Stre... by Rury on Sunday May 29, 2022 @11:02PM (#31555109)
>I've seen repeated by CFAs -- velocity of money is linked to inflation

It can be, as increased demand can increase the velocity of money, but it's not directly or intrinsically connected (as you can also just suddenly trade something back and forth many times without prices changing and the velocity would have increased).

Really, it's demand/supply which determine prices.

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Re:The rise and fall of Cathie Wood, controversial Wall Stre... by FastMonkey on Sunday May 29, 2022 @11:18PM (#31555161)
In theory:

(real GDP)×(price level) = (money supply)×(money velocity)

In general terms its probably a decent model. But ya, there are situations where it's not completely internally consistent.

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