Just kidding, actually one huge tangent
You have a typo in this statement
If we assume that V and Y are constant, then yes, an increase in M begets an increase in Y. Shouldn't that be an increase in P?
Good catch - thank you! Correcting now.
Yes, but to sum up the latter point of the article, is that the savings rate increased, meaning V = decreased, therefore P would remain stable.
You have a typo in this statement
If we assume that V and Y are constant, then yes, an increase in M begets an increase in Y. Shouldn't that be an increase in P?
Good catch - thank you! Correcting now.
Yes, but to sum up the latter point of the article, is that the savings rate increased, meaning V = decreased, therefore P would remain stable.