Monetary aggregates in the US since 2020 and post-COVID-19 inflation
evidence from the equation of exchange
Informazioni aggiuntive
Autori
Beretta E.,
Neuberger D.
Tipo
Articolo pubblicato in rivista scientifica
Anno
2023
Lingua
Inglese
Sommario
Starting from Irving Fisher’s equation of exchange ( ) at the basis of the quantity theory of money, we analyze from a theoretical macroeconomic-monetary perspective whether the increase of monetary aggregates M1 and M2 might have affected general prices. Moreover, we investigate why monetary aggregates have evolved differently for COVID-19 than in the global financial crisis (2007-2009). The article elaborates on data for the US from Q1/2020 to Q2/2022 and represents the first scientific contribution to the analysis of post-COVID-19 inflation by means of the equation of exchange. We find that money growth seems to have contributed to inflation supporting the “monetarist” view, but that non-monetary drivers such as supply shocks and increasing profit margins outweigh the monetary ones.
Parole chiave
COVID-19, Inflation, Irving Fisher’s equation of exchange, Macroeconomics, Velocity of money
Periodico
Economics and Business Letters
Volume
12
Numero ( Mese )
4
Pagine (o numero dell’articolo)
321-330
Diffusione
Licenza
CC BY
Visibilità
Pubblico
Status open access
Gold
