What Does The Velocity Of Money Have To Do With High Inflation?

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All individuals, based on their own circumstances, decide whether to save, invest, or spend their money. What each person expects to happen in the future plays an important part of the decision. This is the prime reason why trying to treat the economy as a mechanical process is fundamentally wrong. Central planners, and their use of “tools” and “models” to manipulate money always ends up in failure. Life is far too complex, and their “models” can never account for all of variables involved in each individual decision. We need sound money and free markets; not The Fed.


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