Does Falling Money Velocity Point to Lower Inflation?
Broken Pie Chart · Broken Pie Chart
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Show Notes
In the recent Covid financial crisis the Federal Reserve "printed" a bunch of money that increased the money supply. This should lead to massive inflation, right? Well, maybe not if we look at the relationship between the velocity of money (how often the same dollar is used) and the inflation rate. See how to figure out the velocity of money. What is the money supply and where to find it?
What is the Velocity of Money?
What is the money supply?
Difference between MZM, M1, and M2 money supply
Relationship between money velocity and inflation
Comparing increase in money supply now in 2020 to the 2008-09 period
Money supply has increased over 20% since Feb in the US
Money as a medium of exchange
What happens when the velocity of money goes below 1 (like in Q2 2020)?
Japan experience with deflation and low money velocity
Where can you find the money supply, GDP, and money velocity charts?
Mentioned in this Episode:
See the graph money velocity vs. inflation here https://razorwealth.com/money-velocity-relationship-to-inflation/
Current Nominal GDP US https://fred.stlouisfed.org/series/GDP
Current Velocity of Money Supply MZM https://fred.stlouisfed.org/series/MZMV
Current Money Supply MZM in US https://fred.stlouisfed.org/series/MZM
Free Chapter from my book Broken Pie Chart https://www.book2look.com/book/YcqUhbCrtN
Derek Moore's book Broken Pie Chart https://www.amazon.com/Broken-Pie-Chart-Investment-Portfolio/dp/1787435547/ref=sr_1_1?keywords=broken+pie+chart&qid=1558722226&s=books&sr=1-1-catcorr
Contact Derek www.razorwealth.com