We first talked about Quantity Theory of Money some time back (click here for the post) focusing rather on the macro picture. For example how do money printing and manipulation of money supply become government’s propaganda tool.
Today we’ll take a look from a micro effect perspective, namely wealth effect and how does it affect us.
We continue our discussion from the previous post where we talked about money supply, currency devaluation and the new 21st century war called the ‘currency war’. James Rickards, author of Currency Wars described it succinctly when he said, “Currency wars are akin to tug of war. Nothing much seems to happen on the surface. But as tension builds up underneath, it’s only a matter of time when the rope is pulled to one side or the other.” Well, it’s not word for word. Curse me for not copying it down previously.
Continue reading Macroeconomics Myths: Quantity Theory of Money & The Multiplier Effect
