https://www.youtube.com/watch?v=VeKq-l2Uzv8
http://www.npr.org/sections/thetwo-way/2017/04/28/526012804/gdp-grew-just-0-7-percent-in-first-quarter-of-2017
All of that extra income did not make it to the hands of the creative video producers, so then they did not buy as much (the banks should be very concerned about he velocity of money going down)
MV=PY
Money * Velocity of money = Price level of goods and services * GDP (Y)
so
decrease of Y is a decrease of Money in criculation or lower circulation of money or a higher price level of goods and services
Therefore MV/P = Y
M and/or V goes down with P going up means that GDP must be lower.
No comments:
Post a Comment