Peter Stella on the Fiscal Theory of the Price Level
Macro Musings with David Beckworth
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Quantity Theory of Money Is Still Valid
i'm trying to imagine what quantity theory fans would say and i want you to give answers to this so a couple of things one some might say well i think the quantity theory money is still valid if we expand the definition of money. Think of money broadly as including treasury securities and we include treasury securities because they are holly liquid like your colleague just mentioned said they're used as collateral They have a convenience field on them, for example william barnett does this divisia money aggregate measures that include treasuries he has an m4 measure. So yeah there's going to be a correlation but it's running the causation if there is a causation is running the other way right?
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