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rrmhearts
Jul 8, 2022 6:46 PM

Money velocity is correlated to inflation 

(GDP-FGEXPND)/M2SLFRED

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Money velocity after removing government expenditure is still correlated to inflation. It's not the current number, it's the rate of change. Recently, some on Twitter have stated low M2V means there is not a correlation between velocity and inflation; it's the rate of change.
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