If the money velocity equation is GDP/M2, and M2 is growing faster than GDP, which it has been, one should expect money velocity to be declining, and this is what we have seen over the past several years, the decline in the velocity of money is due to simple math rather than the economy flat-lining, and is not necessarily a signal of economic trouble.
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And the XYZ equation says 3=d is4.2222 I mean really. The fact remains that in the real world the average Joe is much worse off than he was just 10 years ago.
Unfortunately we live in a banker-eat-avg-Joe world. Hopefully real change is coming.
I consider you an average Joe, are you much worse off than you were just 10 years ago?
Unfortunately, or fortunately, I make more than the average salary just by blogging alone, but most people I know are not better off today than they were 10 years ago.
Fair enough, everyone's situation is different, most people i know are much better off than they were 10 years ago.