The Quantity Theory of Money

[PissedFechtmeister]

Velocity of money isn't really constant though. It usually slows in a recession and accelerates during economic growth. There are counterexamples to both, of course, and it depends a bit on one's measure of the money supply. Excellent video series.

[TheArfdog]

Hi, maybe you can do a video that briefly explains why gold is no longer an appopriate currency, since lately in politics it's been mentioned a few times. This equation perfectly illustrates why.

[maxkytube]

%change (M*V) is not equal to %Change M + %change V

for instance if I had %5 * (100*3) = 300* 5% = 15

but 5%*100 + 5%*3 = 5.15, so they are not the same. Am I missing something in your presentation?

[jodiecongirl]

@maxkytube I added a video response that addresses this point.

[jpat911]

@maxkytube

Take the natural log of %change(MV)=%change(PY) to get the last equation. its the product rule of natural logarithms

[NovaSpace888]

Thanks Jodie, very clear and easy to understand.

[ctkdev]

How does capacity utilization factor into the Quantity Theory of Money?

[David4462]

Nice job Jodie! Your explanations are always well thought-out and clearly explained.

[happyflea]

Great video!

[Timb0NZ]

please teach us this shit in a bikini