mV=PQ

More Macro-economics at the Register! The short answer is that it did. Tim explores Friedman’s mV=PQ and the newish phenomenon that V varies; it’d be a bit shit if it varied as a result of changes in m, but Tim concludes that QE proves there is a monetary policy option to business cycle management. Something that had been thought to be unavailable since 1936.

mV=PQ

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