Velocity Wanted: Insensible Trade-offs in fine
The rest of us find on the shoulders of Irving Fisher from New Haven and William Baumol from Princeton as follows: 1) Money is useless for any other purposes than “purchasing.” We hoard it, if ever, in solid cash or thin-airy demand deposits to utilize as the liquid currency, aka GAME (for generally accepted medium of exchange), at the time of exchange . 2) Like any other “ People Thinking at the Margin ” (to Gregory Mankiw from Cambridge ), the rest of us think at the margin and keep amassing money to the marginal dollar where the benefit of hording equals to the cost . 3) Typically in Princeton, the collective sum total of individual liquidity preferences in preparation collectively for P ∙ Y (“ nominal GDP ”) is found out to be to be: M d = ( b ∙ P ∙ Y / 2 i ) 1/2 . 4) Owing to Paul Samuelson from Cambridge, the rest of us are very much well aware that...