Showing posts with label velocity of money. Show all posts
Showing posts with label velocity of money. Show all posts

Friday, January 16, 2009

Uh-Oh . . . or, Be Fruitful and Multiply


One more post for today.
Per the St. Louis Fed, here is a graph on money velocity (M1 money multiplier) from the St. Louis Fed.

This graph shows the ratio of M1 to the St. Louis adjusted monetary base. I would suspect that the only precedent for this in the past 80 years is the Great Depression.

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