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inflation

If I had only 5 minutes to Teach a Politician Macroeconomics, ...

Posted by gkdapaa on Fri, 05/11/2007 - 20:07

If i had just 5 minutes to teach a politician Economics, I would tell them about the Money equation:
MV = PY
where M is the amount of money in the economy; V is the velocity of money and it's just a measure of the number of times a cedi note changes hands (In other words, it's a measure of the rate at which transaction takes place); P is the price level of the economy; and Y is the real GDP or output level of the economy (normally called the economic pie). Y includes all final goods and services produced in the country.