- Inspired – or better said: borrowing heavily from – this tweetstorm by monetarist Lars Christensen, we want to do present a monetary analysis of the upcoming US inflation spike. Lars’ analysis of the inflation spike is simply rearranging the famous Fisher equation of exchange. Or: the money supply times the velocity of money equals nominal GDP. And nominal GDP equals real GDP plus inflation.
- Post-outbreak charts of the extraordinary growth in the money supply have frequently done the rounds. They look something like this:
For the full report, click here