Agree, velocity can be a symptom of an increase in economic activity, but that is totally different from asessing future productivity.
Post by twetch#7355
I wouldn’t say totally different - future productivity is certainly impacted by inflation, no?
I was trying to imagine how an increase in economic activity could create lower velocity.
Sure, maybe after some period of time, but ‘in the now’?
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- Block
- 633 873
- Time
- 2020-05-07T19:30:15Z
- Signer
- 1J6h7Bex83EVCGvamT5LMVm9MECX4bSquW
- App
- twetch
- Type
- post
- Content type
- text/plain
- Name in tx
- twetch#7355
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Since GDP is in the numerator, you can link velocity to economic activity supposing money supply is constant, but one thing is present and another is future economy.