where, M is the growth of the money supply, V the growth rate of the velocity of circulation (the inverse of growth in money demand), P inflation (here represented by the Core PCE) and Y the growth of real output."
"the growth rate of velocity of circulation..."
That's all a bit thick to decipher; could you provide the Units for each of the variables?
Presumably the combination of Dollars, Time, or whatever.
(in physics, we always have the units available to ensure we are adding like quanities, and see what is the sense of the various divisions/ratios)
You say:
"M+V=P+Y
where, M is the growth of the money supply, V the growth rate of the velocity of circulation (the inverse of growth in money demand), P inflation (here represented by the Core PCE) and Y the growth of real output."
"the growth rate of velocity of circulation..."
That's all a bit thick to decipher; could you provide the Units for each of the variables?
Presumably the combination of Dollars, Time, or whatever.
(in physics, we always have the units available to ensure we are adding like quanities, and see what is the sense of the various divisions/ratios)
Thanks!