How Low Can It Go? M2 Money Velocity Sinks To 0.7

According to the Atlanta Fed’s GDPNow forecast of Q2 GDP, US GDP is expected to sink -34.7% QoQ. With the blistering growth in M2 Money Stock, the result is a historic low below a reading of 1 … at 0.7.

How low can it go?

And no, I am not going to use Ludacris’ “How Low.”

The M2 Velocity chart is courtesy of my FNAN 311 student Elena Baydina.

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