Gordon Johnson: Inflation driven by M2 and velocity, not M2 divided by GDP

Gordon Johnson: Inflation driven by M2 and velocity, not M2 divided by GDP
Inflation on M2 and velocity formula

Gordon Johnson, CEO / Analyst at GLJ Research, challenges a common explanation of inflation by stating that it results from M2 multiplied by the velocity of money (M2V), not from M2 divided by GDP.

He expresses surprise that an interviewer did not address this distinction, referencing TSLA in his comments.

Johnson has commented on a range of market topics in recent months. He previously addressed oil prices, noting that no oil tankers crossed the straight over a weekend while oil prices remained steady ahead of U.S. market sessions. In a separate analysis, Johnson described Kevin Warsh as a possible Federal Reserve chairman who could support Americans affected by central bank policy.

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