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 Inflation Alert: The Velocity Of Money Has Finally Bottomed

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RR Phantom

RR Phantom

Location : Wasted Space
Job/hobbies : Cayman Islands Actuary

Inflation Alert: The Velocity Of Money Has Finally Bottomed Vide
PostSubject: Inflation Alert: The Velocity Of Money Has Finally Bottomed   Inflation Alert: The Velocity Of Money Has Finally Bottomed Icon_minitimeThu Feb 08, 2018 6:41 pm

Forget the Trump tax cuts, the Senate budget deal, the Fed's Quantitative Tightening and the collapse in foreign buying of US Treasuries: after years of dormancy, the biggest catalyst for a sharp inflationary spike has finally emerged, and it is none of the above. Behold: the velocity of money.

Inflation Alert: The Velocity Of Money Has Finally Bottomed Velocity%20of%20money

Over the past decade we have shown this chart on numerous occasions and usually in the context of failed Fed policy. After all, based on the fundamental MV = PQ equation, it is virtually impossible to generate inflation (P) as long as the velocity of money (V) is declining.

https://www.zerohedge.com/news/2018-02-08/inflation-alert-velocity-money-has-finally-bottomed
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Inflation Alert: The Velocity Of Money Has Finally Bottomed

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