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Pastimes : Clown-Free Zone... sorry, no clowns allowed
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To: Elroy Jetson who wrote (394422)9/16/2009 1:46:13 PM
From: Real Man1 Recommendation  Read Replies (2) of 436258
 
Not really. Jacking up money supply automatically
leads to a drop in velocity, which is the ratio of GDP to ...
now jacked up money supply. Oh, and they more they jack it
up, the more velocity drops. Good grief! But it ain't
deflationary.

V = GDP/Money supply.

Thus, in a recession jacking up money supply
automatically leads to a drop in V. You just can't call
printin' deflationary, sorry, cause it ain't the consumers.
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