Escape Velocity with Lacy Hunt
The ACID Capitalist Podcast
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Is There a Direct Relationship Between ODL and GDP?
When Friedman was writing and producing his empirical work there from the early 50s to the early 80s, he did no major work after 1980s. The velocity of money was stable. It wasn't constant, but the fluctuations were so unimportant that it really didn't matter whether velocity was moving up or down. So today, what I do is I look at ODL and then I also look at velocity of money. And they're both complex variables. They're endogenous. They're a lot of moving parts. But I am convinced that just as Paul Volcker was convinced that the monetary model is still better than what we have.
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