Velocity of money now slower than during the Great Depression

Discussion in 'Markets & Economies' started by SpacePete, Sep 12, 2014.

  1. SpacePete

    SpacePete Well-Known Member Silver Stacker

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    Not only is the velocity of money now slower than during the Great Depression, it is continuing to decrease.

    [​IMG]
    Source: http://imgur.com/HkXUvyE
    Source: http://research.stlouisfed.org/fred2/graph/?g=9wK

     
    SpacePete, Sep 12, 2014
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  2. SpacePete

    SpacePete Well-Known Member Silver Stacker

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    A parable:

     
    SpacePete, Sep 12, 2014
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  3. smk762

    smk762 Active Member Silver Stacker

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    Is the moral of the story that if you pay your debts promptly but extend credit generously, your town will be run down until a nearby plutocrat suffers from a natural disaster?
     
    smk762, Sep 12, 2014
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  4. mmm....shiney!

    mmm....shiney! Administrator Staff Member Silver Stacker

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    Because the vast majority of Americans do not have access to the funds the Fed are printing, I think it (velocity of money) explains why runaway inflation has not occurred despite the printing.
     
    mmm....shiney!, Sep 12, 2014
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  5. raven

    raven Well-Known Member Silver Stacker

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    It means, to be rid of the tax man !
     
    raven, Sep 12, 2014
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  6. TreasureHunter

    TreasureHunter Well-Known Member

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    This could also mean a slower consumption - commercially...

    Any stats on consumption of goods, services in the USA, EU?
     
    TreasureHunter, Sep 12, 2014
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