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Politics : High Tolerance Plasticity
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To: Terry D who wrote (3018)4/6/2001 3:19:53 PM
From: Tommaso  Read Replies (1) of 23153
 
That's a good question, though actually it's a measure of quantity of money, not velocity of turnover. It might have something to do with the treasury buying in bonds, it occurs to me, or with tax revenues accumulating in government accounts. Or there may be as yet unspent lines of credit and loans created by banks. In any case, there's a huge increase going on in potential purchasing power.

I think I'll go loking and see if a real economist, such as Paul Kasriel, has made any comment on this liquidity. I can't imagien why some Friedmanite "shadow open market committee" has not commented on it.
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