Monetary Policy Tag

Does the Fed Have a Brewing Velocity Problem?

17 Nov, by Steven Vannelli, CFA in Economy

A basic tautology that economists consider when thinking about monetary policy is the velocity of money. MV=PQ translates into Money*Velocity=Price*Quantity. Of course, price*quantity is nominal GDP while “M” is the money supply (for example, M2) while “V” is velocity, or the number of times the...

World Inflation Falls To 59-Month Low

01 Dec, by Knowledge Leaders Team in Uncategorized

All eyes seem to be on crude oil prices right now. Taking an average price of WTI and Brent as a proxy for global oil prices, oil is down over 33% year-to-date. In November alone, oil was down about 12%....

BOE decision

10 Oct, by Knowledge Leaders Team in Uncategorized

Without any decisive economic data to influence its actions one way or another, the BOE opted to maintain its benchmark rate and the level of its bond-buying program:...