Hacker News new | ask | show | jobs
by divbzero 1884 days ago
Yes, the key role of velocity of money in the monetary equation [1] is an excellent point to call out. An article from Nov 21st 2020 [2] discussed how velocity of money has fallen since the 1980s and dropped sharply last year. I’ll be curious to watch: (a) if velocity of money picks up after COVID and leads to consumer inflation; (b) the impact of money supply on interest rates and asset prices unrelated to consumer inflation.

[1]: https://en.wikipedia.org/wiki/Equation_of_exchange

[2]: https://www.economist.com/finance-and-economics/2020/11/21/w...