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[economics help]M1 money multiplier below 1

Discussion in 'BBS Hangout: Debate & Discussion' started by robbie380, Jan 3, 2009.

  1. glynch

    glynch Member

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    I can't pretend to be very knowledgeable about the velocity of money.

    Can it be too high? Does the current low value necessarily imply that the economy will be in bad shape? If so, I guess the immediate issue is what would increase it faster or more securely. A public works program ?or a tax decrease? as the conservatives/GOP want. We apparently can't cut interest rates further.
     

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