Velocity
In each and every atomic transaction, money and goods with the same value flow in the opposite directions, so the Fisher-equation seems to be a mere identity.First, the structure of the economy determines how often money should change hands. An economy where production is vertically integrated requires fewer money flows than a horizontally integrated one.
Velocity
In each and every atomic transaction, money and goods with the same value flow in the opposite directions, so the Fisher-equation seems to be a mere identity.First, the structure of the economy determines how often money should change hands. An economy where production is vertically integrated requires fewer money flows than a horizontally integrated one.
