Inflation is associated with increases in the velocity of money. In QM Theory we use the Transaction Rate, but the result is the same. Transaction rates are not minimized in inflationary periods, hence measurement uncertainty.
In line with my thinking, finance closely follows the bulge in transaction rates, and is not the cause of inflation. QM Theory does not believe the Money Illusion, rather events in society ramp up transaction rates first, inflationary money follow imperceptibly behind.
In terms of equilibrium points on the yield curve, there are too many terms during inflationary times, and too few in deflationary times. When there are too many equilibrium points, the uncertainty band about each term will overlap, and during deflationary times there will be gaps of measurement where the yield curve is not adequately measured.
Right now, in deflation, we notice the consolidation of finance firms, and the close correlation between finance, the Fed, and Treasury. They have formed a conglomeration because there is not enough measurement space for them to fit individually.
More on this later....
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