Story Comments
Posted by: ssfahrer 7 months, 1 week ago
This page is a permanent archive of the comment below and its replies.
To view this comment in the context of the full discussion for the story, use this link.
-
Neutral
ssfahrer7 months, 1 week ago
This comment is below the standard viewing threshold View It ยป
Actually, you have to look at a classic economic formula:
Reply
MV= PQ. M= the money supply; V= the Velocity of Money; P= the Price Level at any point in time and Q= the Quantity of Goods produced at said point.
What we have now is VERY low velocity of money (under 1, let's say). Any increase in M will have LITTLE EFFECT on either P or Q since V is so low. If V should rise, THEN and ONLY THEN can we even THINK about 'inflation' as being a potential problem. As long as unemployment is high (and it will be for quite a while), I don't think inflation will be a problem-- but neither will deflation, since there are still > 300 million Americans that have demands on the economy, but they won't demand as much, so no inflation. But as long as there are more births than deaths, deflation is not that great a danger....
loading ...
People Who Liked This Comment (0)
No one voted this comment positively. Is it really that bad of a comment?
People Who Didn't Like This Comment (0)
No one voted this comment negatively.
Post Reply
You are not signed in to Propeller.com. Please sign in to post a reply.