Re:JPMorgan Chase Bank Assumes All the Deposits of First Rep...
by JumpCrisscross on Monday May 01, 2023 @04:51AM
(#35770453)
> amount of $ measured in terms of US GDP (also in $)
It’s convention because it cancels out a lot of noise. (Both nominal.) And there are practical reasons for a larger economy needing more money to work than a smaller one. But if you prefer, it can be calculated in various ways, all of which tell a similar story: we’ve been in a different regime for the last 1 to 3 years in which there is less money, and a regime before that since 2008 when there was a lot more money.
It’s convention because it cancels out a lot of noise. (Both nominal.) And there are practical reasons for a larger economy needing more money to work than a smaller one. But if you prefer, it can be calculated in various ways, all of which tell a similar story: we’ve been in a different regime for the last 1 to 3 years in which there is less money, and a regime before that since 2008 when there was a lot more money.