Re:The Death of the Middle-Class Musician
by eru on Sunday June 29, 2025 @03:47AM
(#44411079)
If you have an inflation targeting central bank, velocity of money doesn't really matter.
If velocity speeds up and inflation goes up, the central bank will remove money from circulation to hit their target. If velocity goes down, the central bank will inject money into circulation.
The fiscal multiplier is zero.
(Or rather, any deviation of the fiscal multiplier from zero is evidence of an incompetent central bank.)
If velocity speeds up and inflation goes up, the central bank will remove money from circulation to hit their target. If velocity goes down, the central bank will inject money into circulation.
The fiscal multiplier is zero.
(Or rather, any deviation of the fiscal multiplier from zero is evidence of an incompetent central bank.)