The Velocity of M2 in the United States
From 1959-1979 the velocity of M2 in the United States was never more than 5% away from its long-run trend...
Since 1979 the velocity of M2 in the United States has usually been more than 5% away from its long-run trend...
The first graph accounts, I think, for the rise of post-WWII monetarism in the United States. The mystery raised by the second graph is why there are still any monetarists--anyone using money stock movements to forecast spending movements--around at all...
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