Re: debate thread
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I think people are trying to take the scenario too black and white. There are numerous ramifications, domestic and global, that would have some effect, and many effects would be offsetting. The point was that on a very simplistic, formulaic basis, MV=PQ will show no effect on Q if both M and P increase at the same rate and V is unchanged.
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If V is unchanged? That's a hell of an assumption. It's the fact that this pesky V does change substantially and erratically that doomed this simplistic model for any practical use. Also, if you capriciously increase the supply of money, then the concept of M in that equation would become hazy, as people would lose trust in the currency and use other things as money instead.
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