The Quantity Equation: MV = PY, Velocity and Implied Inflation
This lesson is part of the course
In this lesson
You turn eight years of money, output and prices into nominal GDP and velocity, measure compound growth rates and use MV = PY in growth form to find the inflation implied by a money-growth plan, and the money growth that fits the target.
Buy the course once for $9.99 to unlock every lesson and lab, the final exam and the certificate – lifetime access, no subscription.
Lessons in this course
- Counting Money: Currency, Deposits and the Aggregates M1 to M3 Locked
- Deposit Creation: Rounds, Leaks and the Money Multiplier Locked
- The Quantity Equation: MV = PY, Velocity and Implied Inflation Locked
- A Rule-Based Policy Rate: Inflation Gap, Output Gap and the Deviation Locked
- Policy Stance: Real Rates, the Neutral Rate and Tight vs Loose with IFS Locked
- The Central Bank Balance Sheet: Asset Purchases, Reserves and Bank Liquidity Locked
- Seigniorage and the Inflation Tax in a Simple Steady State Locked
- Inflation-Target Scorecard: 12-Month Inflation, the Band and the Chart Locked