[c7b]

Monetary velocity is defined as the price level times real output over the money supply. There is a mechanical relation with inflation (which is the delta of the price level), but saying that's a unidirectional casual link is a disingenuous interpretation.

[makomk]

This isn't just some weird game with definitions, though, I'm pretty sure it has actual consequences that are important for understanding inflation and the cost of living crisis.

Currently, energy prices have been going up due to an inadequeate supply of fossil fuels and an excessive supply of money (especially outside the USA, with natural gas prices particularly high). This is a direct consequence of too much money chasing too little supply; it's not possible to set a lower price because more would be purchased at that price than is actually available. However, all the money people are spending doesn't just disappear but ends up as profits for fossil fuel producers, and particularly in Europe there's been a push to fix this by placing windfall taxes on producers and using it to subsidise consumer prices. The problem is that although the money doesn't disappear, the fuels bought with it have gone up in smoke, so if you distribute that money back to consumers you're effectively increasing the amount of money they have to spend chasing the same limited supply of fossil fuels just like if you outright printed money. In a sense, monetary velocity is the supply of money.