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The FED more than validated the 70's oil price shock. All you have to do is look at the G.6 release (transactions' velocity). The drop-in real growth rates in the transition from the great inflation to the great moderation is because banks are not intermediaries. The deregulation of the bank's deposit rates was an error. All monetary savings originate in the banks, from a shift from DDs to TDs. That's why Dr. Philip George's equations worked: "The riddle of money finally solved".

Economists looked at the wrong monetary metrics. They should have been watching required reserves (which they dismissed thinking banks are intermediaries). Paradoxically, the DIDMCA was in part due to the declining percentage of member banks (65%) legal reserves to nonmember banks.

Secular stagnation is simply the impoundment of savings in the banks, a deceleration in the circular flow of income.

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