The velocity of money (M2V) is the rate at which consumers and businesses spend money and it’s calculated as the ratio of gross domestic product to the country’s money supply.
MV = PY
V = PY/M
M: Money growth.
V: velocity of money (or the rate at which people spend money).
P: the general price level or inflation
Y: the number of goods and...
We can now see the M2 Money supply in Trading View. Just type 'FRED:' as the search term as the symbol.
There was a TV notice about this, but I wanted to store it here too, because it's really helpful :)
Here's the notice:
Also see these other instruments...
I was taught in undergrad that adding to the money supply is inflationary . The logic was, you print more bills; the existing currency gets diluted in buying power.
Following the ‘Crises of 2008’ the Fed launches Quantitative easing and purchases long term securities increasing the money supply and lowering rates. This activity would result in more investment...
Hello fellow traders and dear padawans. The equities market has been hit very hard the past 3 weeks or so, specially growth stocks. I think it is important to address what is happening behind the scenes that caused the selloff in the equities market so that many of you can better understand what is going on.
This is a very basic explanation of macroeconomics and...
Charting economic data can help you learn more about the macro world and see the bigger picture. This chart shows weekly Initial Jobless Claims in the US. In other words, it shows you how many people are filing for unemployment each week. The big spike, which has never been seen before in economic history, shows what the COVID-19 slowdown did to the economy in...
(This is not a political post.
Please... No death threats...)
We have seen a notable rise in the US Debt
(in terms of % of Gross Domestic Product)
and each rise is illustred in green color.
Each President in office during this time, belonged
to the Republican Party.
Please look it up and analyze the facts.
Only once do we notice a sharp...
If you're a analyst that has been using M2, I'm here to let you know the data has been discontinued. However, FRED is still updating the data under a new ticker "M2SL" and "WM2NS". Hopefully tradingview updates M2 with the "WM2NS" data from FRED as that one updates weekly now. Thanks for interacting with the post as it'll be more likely for tradingview to see this...
M2, a measurement of the money supply, is a critical factor in the forecasting of issues like inflation. Inflation and interest rates have major ramifications for the general economy, as these heavily influence employment, consumer spending, business investment, currency strength, and trade balances. In the US, the Federal Reserve publishes money supply data every...
In this video, we show how you and your friends can collect $30 in TradingView Coins to use toward paid plans like Premium. If you refer TradingView to a lot of people, make sure to follow this video closely. It's how you and your network can get $30 worth of TradingView Coins.
Step 1 - Visit the refer-a-friend page where you can find your unique link. You...
In my last post, I talked about the liquidity trap (Banks not lending out enough despite being flooded with cash by Fed) . For loans to households, banks tightened standards across all categories of residential real estate (RRE) loans and across all three consumer loan categories—credit card loans, auto loans, and other consumer loans—over the second quarter of...
Even if the purchasing power is rising, without the increase of velocity of money, there will be no inflation and sustained economic growth.
Circulation/velocity of money measures the interval between money transactions, decline means less transaction is taking place and the interval between money transactions is getting longer.
According to the July 2020 Senior...
How effective are Fed's monetary policies and tools?
Fed has three simple goals- Grow GDP, keep inflation rate steady and keep the unemployment rate low.
Some argue that Fed's perceived power over the market was exposed during several occasions-
#1. During the 2008 in the midst of sub-prime mortgage crisis, the market continued to plunge despite the Fed's...
The president of the Minneapolis City Council says the city’s Police Dept. will be dismantled and replaced with a “transformative new model of public safety.”
They vote friday. Council members have also shown support for ANTIFA.
"A tribune of the plebs assaulted on the steps of the Senate house! Can you imagine a more terrible sacrilege? Our beloved Republic is...
Recently the STLFSI retreated to its near-historical low levels. RSI is indicating a divergence that could indicate the index will head higher. Markets are also looking poised to resume their volatile trend to the downside after rallying this year.
About the Index:
The STLFSI measures the degree of financial stress in the markets and is constructed from 18 weekly...