tag:blogger.com,1999:blog-5713178645208582139.post742700794344552140..comments2024-03-22T02:37:15.030-05:00Comments on Macro Musings Blog: Everything You Wanted To Know About IOERDavid Beckworthhttp://www.blogger.com/profile/04577612979801459194noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-5713178645208582139.post-40976421175272651822012-09-13T15:31:49.113-05:002012-09-13T15:31:49.113-05:00If there is more "money" in the MV produ...If there is more "money" in the MV product, then velocity will just adjust.<br /><br />Increasing the interest rate will rapidly reduce the velocity, so if there is "too much" monetary base, that M increase can be offset by a V decrease.<br /><br />But is Net Worth part of the M?<br />Not in most models -- which is why most models failed in the 2000-2012 time frame.<br /><br /Tom Greyhttps://www.blogger.com/profile/15046612425809449502noreply@blogger.com