Chapter
The Impact of Money Supply on Inflation and the Little Guy
31:59 - 36:51 (04:51)
The Fed believes that the money supply does not have a reliable relationship with inflation, but to hit the Fed's target at 2%, the money supply should grow at around 5% per annum. Unfortunately, the little guy is the one bearing the weight of inflation as they are the one spending the most.
Clips
The quantity theory of money suggests that if you want to achieve the Federal Reserve's 2% inflation target, you should grow the money supply around 5%.
31:59 - 34:30 (02:31)
Summary
The quantity theory of money suggests that if you want to achieve the Federal Reserve's 2% inflation target, you should grow the money supply around 5%. It's based on the equation MV=PQ, where M is the money supply, V is its velocity, P is the price level, and Q is real economic activity.
ChapterThe Impact of Money Supply on Inflation and the Little Guy
EpisodeWhy Does Fighting Inflation Have to Hurt So Much?
PodcastThe Problem With Jon Stewart
This podcast highlights how the little guy is affected by inflation and how they get impacted by the remedy for inflation.
34:30 - 36:51 (02:20)
Summary
This podcast highlights how the little guy is affected by inflation and how they get impacted by the remedy for inflation. It argues that if the Fed would pay attention to the money supply, the little guy would not be facing such high inflation.