Economics and Finance

    

Money Supply, Velocity and Asset Prices: Evidence from US Economy

Authors: Romain Bocher

This paper revisits the equation of exchange from the quantity theory of money, expanding the definition of the purchasing power of money to capital and property investment. Based on this new equation, empirical data on US Economy from 2009 to 2019 enable to show that money velocity is the main determinant of asset transactions and prices. Finally, the concept of velocity is reexamined to integrate the marginal propensity of money to inflate prices, leading to a better understanding of economic distortions caused by monetary policy.

Comments: 9 Pages.

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Submission history

[v1] 2020-04-15 09:27:13
[v2] 2020-04-23 08:19:42

Unique-IP document downloads: 666 times

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