Saturday, February 7, 2009

great unwind

Brad Delong has an interesting post on money velocity:

What I find most fascinating of this graph, is how much velocity of money increased from 1987 to 1997. It really is an aggressive increase. So it seems that any unwind that takes place in the next few months, is not just an unwind of what happened in the last few years, but of what has happened since 1987. So it seems that this velocity slowdown will be much bigger than we initially suspect.


No comments: