Friday, July 1, 2022

A fluid view of money circulation

In this article, we describe money circulation in a fluid sense.

The figure below shows a waterway of money circulation. We expect that this attempt help scientists and engineers, who are familiar with fluid-dynamics and electronic circuits, understand the money circulation. It is easier to understand temporal evolution of money circulation via this image.

A fluid-like money circulation.
A fluid-like money circulation.

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Temporal evolutions of three growth rates of M, V, and nominal GDP

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