gold, page-42168

I don't know about how much you guys do know about V but one thing did caught my eye
immediately when looking at the graph, which was this: The scale appears as a percentage.

The ratio of 1.43 just means that the stock of money when measured as M2 was used 1.43 times.

Compare that with this: https://fred.stlouisfed.org/series/M2V

When it comes to inflation expectations the public seems to have a different opinion.

https://www.clevelandfed.org/our-research/indicators-and-data/inflation-expectations.aspx

To my understanding the inflation issue does boil down to this:

1) is the fiscal deficit going to be financed with the printing of money instead of borrowed money? And

2) is the FED going to allow inflation to run above its 2% target?


PS. The QP=MV model is the same model that lead these guys to cry out and loud: Hyperinflation just around the corner. Curiously, they no longer tell us the the inflation figures are fake.