How Money Supply Drives Inflation (With Graphs and Examples)
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YouTubeMarginal Revolution University
How Money Supply Drives Inflation (With Graphs and Examples)
In the last video, we learned the quantity theory of money and its corresponding identity equation: M x V = P x Y For a quick refresher: ‌•M is the money supply. ‌•V is the velocity of money. ‌•P is the price level. ‌•And Y is the real GDP. In this video, we’re rewriting the equation slightly to divide both sides by Y and ...
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