Watch out!
That equation for the macroeconomy (Quantity Theory of Money) went out of style in the 80s when people realized velocity wasn't a fixed constant, i.e., it only appeared attractive given the small set of data at the time.
That equation for the macroeconomy (Quantity Theory of Money) went out of style in the 80s when people realized velocity wasn't a fixed constant, i.e., it only appeared attractive given the small set of data at the time.
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