A week ago, I wrote about how monetarist theories of money have been violated empirically and how we really don’t know what drives inflation. And as happens always when I write something against monetarist theories of inflation or the quantity theory of money, I got a lot of replies by readers saying:
Has there been any study looking to see if there’s a link between the velocity of money in an economy vs demographics?
Is the “secular decline” really just a measure of the age of an economies participants and the older savers automatically slow the velocity. Let’s face it Japan is leading the charge.
It will of course be materially more complex than this single factor but is it a C material contributor?
Has there been any study looking to see if there’s a link between the velocity of money in an economy vs demographics?
Is the “secular decline” really just a measure of the age of an economies participants and the older savers automatically slow the velocity. Let’s face it Japan is leading the charge.
It will of course be materially more complex than this single factor but is it a C material contributor?
Hi Joachim
The problem may be the measure of Money, this excellent article by Jeff Snider describes the problems of measuring the monetary base in the U.S.
https://alhambrapartners.com/2021/11/15/is-m2-the-money-behind-inflation-if-not-what-is-or-isnt/