>I've seen repeated by CFAs -- velocity of money is linked to inflation It can b... | Hacker News

Hacker Newsnew | past | comments | ask | show | jobs | submit

		Rury on May 30, 2022 \| parent \| context \| favorite \| on: The rise and fall of Cathie Wood, controversial Wa... >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.

FastMonkey on May 30, 2022 [–]

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.

Guidelines | FAQ | Lists | API | Security | Legal | Apply to YC | Contact