Money Supply(M2) x Velocity of Money(M2V) = Price Level x real GDP (GDP)
Therefore
Price Level = (Money Supply(M2) x Velocity of Money(M2V))/real GDP (GDP)
All I did was graph the Price Level according to the first equation
Therefore
Price Level = (Money Supply(M2) x Velocity of Money(M2V))/real GDP (GDP)
All I did was graph the Price Level according to the first equation
Commentaire:
Keeps going up. Buy into your safe havens