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I posted that at Nick's:Another crucial difference between Y=C+I+G+NX and MV=PY is that in the former all quantities are *independently measurable*. MV=PY is a *definition* of v, nothing more. The only thing you could use it for is to measure v, which is useless because v doesn't plug into any other equation. If v was stable, you could maybe use it in the very same equation for a different point of time, different economy etc., but since it is not, you just stop. That is, unless you are an economist.
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