Phanie

“We've already seen how the amount of money in an economy will affect economic growth: more money means more growth, but can also lead to inflation if it's not backed by productivity gains and real wealth creation. The 'extra for experts' bit in this equation is the velocity of money... the V. That's the speed at which money circulates around the economy. In even more basic terms, it is how fast we're spending it.”
― Liam Dann, BBQ Economics: How money works and why it matters

“Economies are the sum of our collective behaviour, and if we all start to believe a recession is coming, then there is a risk that we'll collectively adjust our behaviour. That adjustment can in itself be recessionary. If we spend too much time worrying about recession, they can become self-fulfilling prophecies. So, of course, like a lot of economics, how and when we start talking about recession is highly political.”
― Liam Dann, BBQ Economics: How money works and why it matters

“The great thing about economics is that everyone can have an opinion. There are plenty of facts. But it's a science that is never quite settled. Unlike hard sciences, which can run countless lab-controlled experiments, economics is mostly theory. We only get to observe economic experiments once, in real time, as our choices play out. We never get to see the counterfactual — the alternative outcomes that might have been possible with small tweaks or different policy approaches.”
― Liam Dann, BBQ Economics: How money works and why it matters

“Money is simply a device to measure the value of things. We can't eat it or shelter in it. It's not entertaining or delicious. If we print more, we haven't created any more wealth; we've merely diluted the value of the money. Hence inflation.”
― Liam Dann, BBQ Economics: How money works and why it matters