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A comment on The Demoralization is just Beginning. Parent comment

Re:The Demoralization is just Beginning by roenxi on Tuesday March 04, 2025 @11:33PM (#43262815)
Normalising GDP for the amount of money in the system suggests that velocity of money is the is actually the interesting metric.

Say the monetary base is $100 and the GDP is $1,000 initially, then the monetary base doubles to $200 and the GDP doubles to $2,000. It looks suspiciously like no real economic activity was generated and that suggests that velocity is the growth measure.

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Re:The Demoralization is just Beginning by AnthonyMouse on Wednesday March 05, 2025 @04:09AM (#43264514)
You're essentially assuming an increase in the money supply leads to inflation, which it does if nothing else is different either, but if you also have e.g. a larger population then you're looking at something else.
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