Economics Questions

Re: Every Dollar Spent Annually

The Rev — Sat, 30 May 2009 00:07:23 GMT

If you gave it to me for something, and then I bought something from you, yes.

Such a figure would be handy to calculate the velocity of money, and to determine its role in price inflation. It seems to me that, if the VoM is especially volitile, then the effect of monetary inflation on price inflation diminishes proportionally with that volitility.

It would also be useful to determine the efficiency of economic activity, as you could compare it against real GDP growth (for example) to determine how many transactions gives you a given amount of increase in real value. I would imagine that the economy (or markets within it) operate at different degrees of efficiency during different parts of the business cycle. It would be interesting to look into that.

Personally, I'm interested in the proportions of total spending in different markets. I think the changes in these proportions could also shed light on the business cycle, and on how new money moves through the economy before its completely absorbed in a general price increase.

The Rev

Re: Every Dollar Spent Annually

nirgrahamUK — Fri, 29 May 2009 03:11:28 GMT

if i gave you 5 bucks and then you gave it back, would that count as two spends? what would be the point of this figure? would it be useful?

Every Dollar Spent Annually

The Rev — Fri, 29 May 2009 00:11:12 GMT

I'm trying to find a decent source (or sources) of data to determine a rough number equal to the total of expenditures in a year. That is, the total number of dollars spent on every transaction. I know there isn't going to be a figure that is totally accurate, since there is no way to include black markets, etc. GDP is the best I have been able to find, and it leaves out alot of spending (including purchase of stocks, commodities, etc.). I'm sure there has to be a way to compile a figure that is more accurate than that.

Any suggestions?

Thanks,

The Rev