The distributed lag effects of money flows, the volume and velocity of money, have been mathematical constants for > 100 years.
We knew this already:
In 1931 a commission was established on Member Bank Reserve Requirements. The commission completed their recommendations after a 7-year inquiry on Feb. 5, 1938. The study was entitled “Member Bank Reserve Requirements — Analysis of Committee Proposal” its 2nd proposal:
The distributed lag effects of money flows, the volume and velocity of money, have been mathematical constants for > 100 years.
We knew this already:
In 1931 a commission was established on Member Bank Reserve Requirements. The commission completed their recommendations after a 7-year inquiry on Feb. 5, 1938. The study was entitled “Member Bank Reserve Requirements — Analysis of Committee Proposal” its 2nd proposal:
“Requirements against debits to deposits”
http://bit.ly/1A9bYH1
That was written in retrospect. Money flows are ex-ante. Divisia Aggregates are contemporaneous.