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Feedback on my math

DanT
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5/27/2013 11:18:01 PM
Posted: 3 years ago
Just wanted to make sure my math is correct. Feedback would be much appreciated.
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"Chemical weapons are no different than any other types of weapons."~Lordknukle
DanT
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5/28/2013 1:34:15 AM
Posted: 3 years ago
It basically says the inflation = the % change in monetary supply - nominal transactions. Nominal transactions equals the price of the transactions times the volume of transactions.

Assuming the % change in money is identical to the % change in nominal transactions, there is no inflation or deflation.

The velocity of money = Nominal transactions / the monetary supply.
The monetary supply times the velocity of money = nominal transactions.
If the % change in monetary supply is the same as the % change in nominal transactions than the velocity of money does not change.

The monetary demand equals savings times nominal transactions
If the velocity of money does not change, than the % change in the monetary demand equals the % change in savings times the monetary supply.

If the % change in monetary demand and monetary supply are the same, than there is no change in the interest rate. Thus assuming the velocity of money stays the same, the interest rate will be driven by the change in savings.
"Chemical weapons are no different than any other types of weapons."~Lordknukle
innomen
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5/28/2013 12:01:28 PM
Posted: 3 years ago
At 5/28/2013 1:34:15 AM, DanT wrote:
It basically says the inflation = the % change in monetary supply - nominal transactions. Nominal transactions equals the price of the transactions times the volume of transactions.

Assuming the % change in money is identical to the % change in nominal transactions, there is no inflation or deflation.

The velocity of money = Nominal transactions / the monetary supply.
The monetary supply times the velocity of money = nominal transactions.
If the % change in monetary supply is the same as the % change in nominal transactions than the velocity of money does not change.

The monetary demand equals savings times nominal transactions
If the velocity of money does not change, than the % change in the monetary demand equals the % change in savings times the monetary supply.

If the % change in monetary demand and monetary supply are the same, than there is no change in the interest rate. Thus assuming the velocity of money stays the same, the interest rate will be driven by the change in savings.

Run it by Darkkermit, this is his thing.
darkkermit
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5/28/2013 12:20:52 PM
Posted: 3 years ago
Which equations are your initial premises and which equations are you manipulating?

Some terms seem to just randomly appear for example, where did delta(r) k, n and Md come from.
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DanT
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5/28/2013 1:52:45 PM
Posted: 3 years ago
At 5/28/2013 12:20:52 PM, darkkermit wrote:
Which equations are your initial premises and which equations are you manipulating?

Some terms seem to just randomly appear for example, where did delta(r) k, n and Md come from.

Md represents monetary demand. delta represents change, r represents the interest rate, k represents savings, and n means the value is nominal.

nT = Pt * T or nominal transactions = Price of transactions * transactions
Pi = %deltaM - %deltanT or the interest rate = % change in the monetary supply - % change change in nominal transactions

Vt = nT / M or the Velocity of money = Nominal transactions / the Monetary supply
M * Vt = Pt * T or M * Vt = nT or the Monetary supply * the velocity of money = nominal transactions

Md = k * Pt * T or Monetary Demand = savings * nominal transactions
Md = k * M * Vt = Monetary Demand = savings * monetary supply * the velocity of money

0Pi = %deltaM = %deltanT or there is zero inflation when change in monetary supply = % change in nominal transactions

%deltanT = %deltaM = 0deltaVt or if the % change in transactions = the % change in money than there is no change in the velocity of money.

From this I concluded that without change in the velocity of money;
delta(k*M) = deltaMd or the change in (savings * Monetary supply) = the change in monetary demand

0deltar =%deltaM = %deltaMd or if the % change in monetary supply = the % change in monetary demand there is no change in interest.

thus when the velocity of money does not change;
deltak -> deltar or change in savings dictates change in interest

The equations used are slightly different from those used by Cambridge, for example;

Md = k * Pt * T which Cambridge had as Md = k * P * Y
P being the price and Y being the national income.

I adapted the Cambridge model using transactions instead of income
"Chemical weapons are no different than any other types of weapons."~Lordknukle
darkkermit
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5/28/2013 1:56:28 PM
Posted: 3 years ago
At 5/28/2013 1:52:45 PM, DanT wrote:
At 5/28/2013 12:20:52 PM, darkkermit wrote:
Which equations are your initial premises and which equations are you manipulating?

Some terms seem to just randomly appear for example, where did delta(r) k, n and Md come from.

Md represents monetary demand. delta represents change, r represents the interest rate, k represents savings, and n means the value is nominal.

nT = Pt * T or nominal transactions = Price of transactions * transactions
Pi = %deltaM - %deltanT or the interest rate = % change in the monetary supply - % change change in nominal transactions

Vt = nT / M or the Velocity of money = Nominal transactions / the Monetary supply
M * Vt = Pt * T or M * Vt = nT or the Monetary supply * the velocity of money = nominal transactions

Md = k * Pt * T or Monetary Demand = savings * nominal transactions
Md = k * M * Vt = Monetary Demand = savings * monetary supply * the velocity of money

0Pi = %deltaM = %deltanT or there is zero inflation when change in monetary supply = % change in nominal transactions

%deltanT = %deltaM = 0deltaVt or if the % change in transactions = the % change in money than there is no change in the velocity of money.

From this I concluded that without change in the velocity of money;
delta(k*M) = deltaMd or the change in (savings * Monetary supply) = the change in monetary demand


0deltar =%deltaM = %deltaMd or if the % change in monetary supply = the % change in monetary demand there is no change in interest.

thus when the velocity of money does not change;
deltak -> deltar or change in savings dictates change in interest



The equations used are slightly different from those used by Cambridge, for example;

Md = k * Pt * T which Cambridge had as Md = k * P * Y
P being the price and Y being the national income.

I adapted the Cambridge model using transactions instead of income

I know what delta represents, and if i'm just checking your math it doesn't matter what the symbols represent.
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darkkermit
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5/28/2013 2:04:31 PM
Posted: 3 years ago
At 5/28/2013 1:52:45 PM, DanT wrote:
At 5/28/2013 12:20:52 PM, darkkermit wrote:
Which equations are your initial premises and which equations are you manipulating?

Some terms seem to just randomly appear for example, where did delta(r) k, n and Md come from.

Md represents monetary demand. delta represents change, r represents the interest rate, k represents savings, and n means the value is nominal.

nT = Pt * T or nominal transactions = Price of transactions * transactions
Pi = %deltaM - %deltanT or the interest rate = % change in the monetary supply - % change change in nominal transactions

Vt = nT / M or the Velocity of money = Nominal transactions / the Monetary supply
M * Vt = Pt * T or M * Vt = nT or the Monetary supply * the velocity of money = nominal transactions

Md = k * Pt * T or Monetary Demand = savings * nominal transactions
Md = k * M * Vt = Monetary Demand = savings * monetary supply * the velocity of money

0Pi = %deltaM = %deltanT or there is zero inflation when change in monetary supply = % change in nominal transactions

%deltanT = %deltaM = 0deltaVt or if the % change in transactions = the % change in money than there is no change in the velocity of money.

: From this I concluded that without change in the velocity of money;
delta(k*M) = deltaMd or the change in (savings * Monetary supply) = the change in monetary demand

Alright demonstrated that this is wrong and it's Vt*delta(k*M) = deltaMd


0deltar =%deltaM = %deltaMd or if the % change in monetary supply = the % change in monetary demand there is no change in interest.

Is this equation given or derived? Don't see how this equation was derived.

thus when the velocity of money does not change;
deltak -> deltar or change in savings dictates change in interest

Don't see the proof of this.



The equations used are slightly different from those used by Cambridge, for example;

Md = k * Pt * T which Cambridge had as Md = k * P * Y
P being the price and Y being the national income.

I adapted the Cambridge model using transactions instead of income

Don't see why you can switch the two up. Does T = Y and Pt = P?
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DanT
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5/28/2013 3:00:23 PM
Posted: 3 years ago
At 5/28/2013 2:04:31 PM, darkkermit wrote:
At 5/28/2013 1:52:45 PM, DanT wrote:
At 5/28/2013 12:20:52 PM, darkkermit wrote:
Which equations are your initial premises and which equations are you manipulating?

Some terms seem to just randomly appear for example, where did delta(r) k, n and Md come from.

Md represents monetary demand. delta represents change, r represents the interest rate, k represents savings, and n means the value is nominal.

nT = Pt * T or nominal transactions = Price of transactions * transactions
Pi = %deltaM - %deltanT or the interest rate = % change in the monetary supply - % change change in nominal transactions

Vt = nT / M or the Velocity of money = Nominal transactions / the Monetary supply
M * Vt = Pt * T or M * Vt = nT or the Monetary supply * the velocity of money = nominal transactions

Md = k * Pt * T or Monetary Demand = savings * nominal transactions
Md = k * M * Vt = Monetary Demand = savings * monetary supply * the velocity of money

0Pi = %deltaM = %deltanT or there is zero inflation when change in monetary supply = % change in nominal transactions

%deltanT = %deltaM = 0deltaVt or if the % change in transactions = the % change in money than there is no change in the velocity of money.

: From this I concluded that without change in the velocity of money;
delta(k*M) = deltaMd or the change in (savings * Monetary supply) = the change in monetary demand

Alright demonstrated that this is wrong and it's Vt*delta(k*M) = deltaMd

Thanks, it should be %delta not delta. I made the appropriate corrections


0deltar =%deltaM = %deltaMd or if the % change in monetary supply = the % change in monetary demand there is no change in interest.

Is this equation given or derived? Don't see how this equation was derived.

Its given because if the supply increases or decreases by the same amount as the demand, than the interest rate or price of money stays the same.
thus when the velocity of money does not change;
deltak -> deltar or change in savings dictates change in interest

Don't see the proof of this.

Seeing as k * M * Vt = Md, and Md and M determine r, if the velocity of money does not change the only difference between changes in M and changes and Md would be changes in k.


The equations used are slightly different from those used by Cambridge, for example;

Md = k * Pt * T which Cambridge had as Md = k * P * Y
P being the price and Y being the national income.

I adapted the Cambridge model using transactions instead of income

Don't see why you can switch the two up. Does T = Y and Pt = P?

V = nQ / M
Vt = nT / M

nQ = nominal National Product
Q = National Product
V = the velocity for transactions counting towards the national product.

Because Y measure aggregate national output, it can be switched out for Q, which in turn could be switched out for T by replacing V with Vt and P with Pt.
"Chemical weapons are no different than any other types of weapons."~Lordknukle
DanT
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5/28/2013 3:02:45 PM
Posted: 3 years ago
At 5/28/2013 1:56:28 PM, darkkermit wrote:
At 5/28/2013 1:52:45 PM, DanT wrote:
At 5/28/2013 12:20:52 PM, darkkermit wrote:
Which equations are your initial premises and which equations are you manipulating?

Some terms seem to just randomly appear for example, where did delta(r) k, n and Md come from.

Md represents monetary demand. delta represents change, r represents the interest rate, k represents savings, and n means the value is nominal.

nT = Pt * T or nominal transactions = Price of transactions * transactions
Pi = %deltaM - %deltanT or the interest rate = % change in the monetary supply - % change change in nominal transactions

Vt = nT / M or the Velocity of money = Nominal transactions / the Monetary supply
M * Vt = Pt * T or M * Vt = nT or the Monetary supply * the velocity of money = nominal transactions

Md = k * Pt * T or Monetary Demand = savings * nominal transactions
Md = k * M * Vt = Monetary Demand = savings * monetary supply * the velocity of money

0Pi = %deltaM = %deltanT or there is zero inflation when change in monetary supply = % change in nominal transactions

%deltanT = %deltaM = 0deltaVt or if the % change in transactions = the % change in money than there is no change in the velocity of money.

From this I concluded that without change in the velocity of money;
delta(k*M) = deltaMd or the change in (savings * Monetary supply) = the change in monetary demand


0deltar =%deltaM = %deltaMd or if the % change in monetary supply = the % change in monetary demand there is no change in interest.

thus when the velocity of money does not change;
deltak -> deltar or change in savings dictates change in interest



The equations used are slightly different from those used by Cambridge, for example;

Md = k * Pt * T which Cambridge had as Md = k * P * Y
P being the price and Y being the national income.

I adapted the Cambridge model using transactions instead of income

I know what delta represents, and if i'm just checking your math it doesn't matter what the symbols represent.

Sorry didn't mean to offend.
"Chemical weapons are no different than any other types of weapons."~Lordknukle
darkkermit
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5/28/2013 5:01:37 PM
Posted: 3 years ago
At 5/28/2013 3:00:23 PM, DanT wrote:
At 5/28/2013 2:04:31 PM, darkkermit wrote:
At 5/28/2013 1:52:45 PM, DanT wrote:
At 5/28/2013 12:20:52 PM, darkkermit wrote:
Which equations are your initial premises and which equations are you manipulating?

Some terms seem to just randomly appear for example, where did delta(r) k, n and Md come from.

Md represents monetary demand. delta represents change, r represents the interest rate, k represents savings, and n means the value is nominal.

nT = Pt * T or nominal transactions = Price of transactions * transactions
Pi = %deltaM - %deltanT or the interest rate = % change in the monetary supply - % change change in nominal transactions

Vt = nT / M or the Velocity of money = Nominal transactions / the Monetary supply
M * Vt = Pt * T or M * Vt = nT or the Monetary supply * the velocity of money = nominal transactions

Md = k * Pt * T or Monetary Demand = savings * nominal transactions
Md = k * M * Vt = Monetary Demand = savings * monetary supply * the velocity of money

0Pi = %deltaM = %deltanT or there is zero inflation when change in monetary supply = % change in nominal transactions

%deltanT = %deltaM = 0deltaVt or if the % change in transactions = the % change in money than there is no change in the velocity of money.

: From this I concluded that without change in the velocity of money;
delta(k*M) = deltaMd or the change in (savings * Monetary supply) = the change in monetary demand

Alright demonstrated that this is wrong and it's Vt*delta(k*M) = deltaMd

Thanks, it should be %delta not delta. I made the appropriate corrections

Alright %Delta = (Delta M)/M which is probably important.


0deltar =%deltaM = %deltaMd or if the % change in monetary supply = the % change in monetary demand there is no change in interest.

Is this equation given or derived? Don't see how this equation was derived.

Its given because if the supply increases or decreases by the same amount as the demand, than the interest rate or price of money stays the same.
thus when the velocity of money does not change;
deltak -> deltar or change in savings dictates change in interest

Don't see the proof of this.

Seeing as k * M * Vt = Md, and Md and M determine r, if the velocity of money does not change the only difference between changes in M and changes and Md would be changes in k.



The equations used are slightly different from those used by Cambridge, for example;

Md = k * Pt * T which Cambridge had as Md = k * P * Y
P being the price and Y being the national income.

I adapted the Cambridge model using transactions instead of income

Don't see why you can switch the two up. Does T = Y and Pt = P?

V = nQ / M
Vt = nT / M

nQ = nominal National Product
Q = National Product
V = the velocity for transactions counting towards the national product.

Because Y measure aggregate national output, it can be switched out for Q, which in turn could be switched out for T by replacing V with Vt and P with Pt.
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darkkermit
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5/28/2013 5:10:51 PM
Posted: 3 years ago
I get a value of delta v = delta(Md)/M -v*delta(M)/M.

I also don't know what the equation for delta r is.

Would it be delta r = %deltaM - %deltaMd or r = %deltaMd - %deltaM. Either way, since delta v tells us nothing about the value of Md, there's no way you can know whether delta r is greater or less than delta v.
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DanT
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5/28/2013 7:57:12 PM
Posted: 3 years ago
At 5/28/2013 5:10:51 PM, darkkermit wrote:
I get a value of delta v = delta(Md)/M -v*delta(M)/M.

I also don't know what the equation for delta r is.

Would it be delta r = %deltaM - %deltaMd or r = %deltaMd - %deltaM.

Md and M work against each other. Increases in M decrease r while increases in Md increases r. If M and Md were to increase by the same amount than r would not change.

I would usually write that as delta -delta r = delta M > delta Md or +delta r = delta M < delta Md

Either way, since delta v tells us nothing about the value of Md, there's no way you can know whether delta r is greater or less than delta v.

Except M * V * k = Md
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DanT
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5/28/2013 8:00:12 PM
Posted: 3 years ago
At 5/28/2013 5:11:42 PM, darkkermit wrote:
Also, do you have a source for the original equations? Or at least a term i can google search.

the equations have several variations;
Look up the following terms;

Velocity of Money equation
Quantity Theory of Money equation
Inflation equation
Monetary Demand equation
"Chemical weapons are no different than any other types of weapons."~Lordknukle
DanT
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5/28/2013 8:06:10 PM
Posted: 3 years ago
At 5/28/2013 5:10:51 PM, darkkermit wrote:
I get a value of delta v = delta(Md)/M -v*delta(M)/M.

This is for which equation?
"Chemical weapons are no different than any other types of weapons."~Lordknukle
darkkermit
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5/28/2013 8:09:13 PM
Posted: 3 years ago
At 5/28/2013 7:57:12 PM, DanT wrote:
At 5/28/2013 5:10:51 PM, darkkermit wrote:
I get a value of delta v = delta(Md)/M -v*delta(M)/M.

I also don't know what the equation for delta r is.

Would it be delta r = %deltaM - %deltaMd or r = %deltaMd - %deltaM.

Md and M work against each other. Increases in M decrease r while increases in Md increases r. If M and Md were to increase by the same amount than r would not change.

I would usually write that as delta -delta r = delta M > delta Md or +delta r = delta M < delta Md

Either way, since delta v tells us nothing about the value of Md, there's no way you can know whether delta r is greater or less than delta v.

Except M * V * k = Md

Oh, so you set the interest rate equal to the rate of inflation.
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DanT
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5/28/2013 8:30:08 PM
Posted: 3 years ago
At 5/28/2013 8:09:13 PM, darkkermit wrote:
At 5/28/2013 7:57:12 PM, DanT wrote:
At 5/28/2013 5:10:51 PM, darkkermit wrote:
I get a value of delta v = delta(Md)/M -v*delta(M)/M.

I also don't know what the equation for delta r is.

Would it be delta r = %deltaM - %deltaMd or r = %deltaMd - %deltaM.

Md and M work against each other. Increases in M decrease r while increases in Md increases r. If M and Md were to increase by the same amount than r would not change.

I would usually write that as delta -delta r = delta M > delta Md or +delta r = delta M < delta Md

Either way, since delta v tells us nothing about the value of Md, there's no way you can know whether delta r is greater or less than delta v.

Except M * V * k = Md

Oh, so you set the interest rate equal to the rate of inflation.

The idea is to synchronize M with T, in order to eliminate inflation and prevent changes in the velocity of money.
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DanT
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5/28/2013 8:31:58 PM
Posted: 3 years ago
At 5/28/2013 8:09:13 PM, darkkermit wrote:
At 5/28/2013 7:57:12 PM, DanT wrote:
At 5/28/2013 5:10:51 PM, darkkermit wrote:
I get a value of delta v = delta(Md)/M -v*delta(M)/M.

I also don't know what the equation for delta r is.

Would it be delta r = %deltaM - %deltaMd or r = %deltaMd - %deltaM.

Md and M work against each other. Increases in M decrease r while increases in Md increases r. If M and Md were to increase by the same amount than r would not change.

I would usually write that as delta -delta r = delta M > delta Md or +delta r = delta M < delta Md

Either way, since delta v tells us nothing about the value of Md, there's no way you can know whether delta r is greater or less than delta v.

Except M * V * k = Md

Oh, so you set the interest rate equal to the rate of inflation.

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darkkermit
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5/28/2013 8:36:14 PM
Posted: 3 years ago
At 5/28/2013 8:00:12 PM, DanT wrote:
At 5/28/2013 5:11:42 PM, darkkermit wrote:
Also, do you have a source for the original equations? Or at least a term i can google search.

the equations have several variations;
Look up the following terms;

Velocity of Money equation
Quantity Theory of Money equation
Inflation equation
Monetary Demand equation

couldn't find the inflation equation. Deriving the inflation equation from the monetary equation I obtain.

% inflation = %deltaV +%deltaM - %deltaT
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Contra
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5/28/2013 8:39:10 PM
Posted: 3 years ago
At 5/27/2013 11:18:01 PM, DanT wrote:
Just wanted to make sure my math is correct. Feedback would be much appreciated.
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Makes me feel a little dumber inside.
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5/28/2013 8:48:57 PM
Posted: 3 years ago
At 5/28/2013 8:39:10 PM, Contra wrote:
At 5/27/2013 11:18:01 PM, DanT wrote:
Just wanted to make sure my math is correct. Feedback would be much appreciated.
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Makes me feel a little dumber inside.

I don't understand how people get scared when you replace numbers with symbols when doing math. As an engineering student, you get used to it, but its really not that big a deal.
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DanT
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5/28/2013 9:03:24 PM
Posted: 3 years ago
At 5/28/2013 8:36:14 PM, darkkermit wrote:
At 5/28/2013 8:00:12 PM, DanT wrote:
At 5/28/2013 5:11:42 PM, darkkermit wrote:
Also, do you have a source for the original equations? Or at least a term i can google search.

the equations have several variations;
Look up the following terms;

Velocity of Money equation
Quantity Theory of Money equation
Inflation equation
Monetary Demand equation

couldn't find the inflation equation. Deriving the inflation equation from the monetary equation I obtain.

% inflation = %deltaV +%deltaM - %deltaT

Due to the quantity theory of money;
%delta M + %delta V = %delta P + %delta Y (or alternatively T)
therefore;
Pi = %delta P = %delta M + %delta V - %delta T

So yes you are correct. Assuming there is no change in Velocity;
%delta M - %delta T = Pi
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darkkermit
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5/28/2013 9:07:57 PM
Posted: 3 years ago
At 5/28/2013 9:03:24 PM, DanT wrote:
At 5/28/2013 8:36:14 PM, darkkermit wrote:
At 5/28/2013 8:00:12 PM, DanT wrote:
At 5/28/2013 5:11:42 PM, darkkermit wrote:
Also, do you have a source for the original equations? Or at least a term i can google search.

the equations have several variations;
Look up the following terms;

Velocity of Money equation
Quantity Theory of Money equation
Inflation equation
Monetary Demand equation

couldn't find the inflation equation. Deriving the inflation equation from the monetary equation I obtain.

% inflation = %deltaV +%deltaM - %deltaT

Due to the quantity theory of money;
%delta M + %delta V = %delta P + %delta Y (or alternatively T)
therefore;
Pi = %delta P = %delta M + %delta V - %delta T

So yes you are correct. Assuming there is no change in Velocity;
%delta M - %delta T = Pi

Yes, but you added "Pt" in the equation.

It says:

%delta M - %delta T*Pt = Pi

not what you wrote.
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DanT
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5/28/2013 9:17:28 PM
Posted: 3 years ago
At 5/28/2013 9:07:57 PM, darkkermit wrote:
At 5/28/2013 9:03:24 PM, DanT wrote:
At 5/28/2013 8:36:14 PM, darkkermit wrote:
At 5/28/2013 8:00:12 PM, DanT wrote:
At 5/28/2013 5:11:42 PM, darkkermit wrote:
Also, do you have a source for the original equations? Or at least a term i can google search.

the equations have several variations;
Look up the following terms;

Velocity of Money equation
Quantity Theory of Money equation
Inflation equation
Monetary Demand equation

couldn't find the inflation equation. Deriving the inflation equation from the monetary equation I obtain.

% inflation = %deltaV +%deltaM - %deltaT

Due to the quantity theory of money;
%delta M + %delta V = %delta P + %delta Y (or alternatively T)
therefore;
Pi = %delta P = %delta M + %delta V - %delta T

So yes you are correct. Assuming there is no change in Velocity;
%delta M - %delta T = Pi

Yes, but you added "Pt" in the equation.

It says:

%delta M - %delta T*Pt = Pi

not what you wrote.

Thanks; these errors seem to be from typos (which in math is a major issue). I couldn't sleep last night, so I decided to do this. I expected there too be errors.
"Chemical weapons are no different than any other types of weapons."~Lordknukle
DanT
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5/29/2013 1:12:41 AM
Posted: 3 years ago
At 5/28/2013 2:04:31 PM, darkkermit wrote:
Don't see why you can switch the two up. Does T = Y and Pt = P?

Just looked back at my textbook for money and Banking. It says the equation of exchange is;

M * V = P * Y

Than it went on to read "Fisher actually first formulated the equation of exchange in terms of the nominal value of transactions in the economy PT:
M * Vt = P * T
Where
P = average price per transaction
T = number of transactions conducted in a year
Vt = P * T / M = Velocity of money

Because the nominal value of transactions T is difficult to measure, the quantity theory has been formulated in terms of aggregate output Y as follows: T is assumed to be proportional to Y so that T = vY, where v is a constant of proportionality. Substituting vY for T in Fisher's equation of exchange yields M*Vt=vP*Y, which can be written as equation 2 in the text, in which V=Vt/v."

When I was taking the course I preferred to use T instead of Y for my projects, which is why I decided to use T instead of Y for these equations.
"Chemical weapons are no different than any other types of weapons."~Lordknukle
DanT
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5/29/2013 3:23:47 AM
Posted: 3 years ago
At 5/28/2013 5:10:51 PM, darkkermit wrote:

I also don't know what the equation for delta r is.

Would it be delta r = %deltaM - %deltaMd or r = %deltaMd - %deltaM.

P = (D / S) * Wholesale Cost
Thus;
r = Md / M
"Chemical weapons are no different than any other types of weapons."~Lordknukle
DanT
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5/29/2013 3:28:53 AM
Posted: 3 years ago
At 5/29/2013 3:23:47 AM, DanT wrote:
At 5/28/2013 5:10:51 PM, darkkermit wrote:

I also don't know what the equation for delta r is.

Would it be delta r = %deltaM - %deltaMd or r = %deltaMd - %deltaM.

P = (D / S) * Wholesale Cost
Thus;
r = Md / M

i = the interest rate
r = real interest rate

The equilibrium determines the price of money aka the interest rate.

the equilibrium is expressed as Md = Ms
"Chemical weapons are no different than any other types of weapons."~Lordknukle