....
This is oversimplification. Inflation (as price increase) also depends on money velocity and productivity. I am also curious about the source of the data...
I didn't say that money supply is the only variable in the equation of exchange. But we need to respect the economic terms for what they are and not mix different categories even if they are in a cause and effect relationship
Right, but we should always keep in mind that there are
at least two more independent factors (since Fisher's equation isn't perfect either as it may just not work) that can and do override the money supply factor in this cause-and-effect relation...
Wow, bamboozle me with BS why don't you? What?
You mean an economic formula called Fisher's equation is not perfect? Unbelievable! Imagine that, an imperfect economic equation that may not work.
When I said Fisher's equation is not perfect (and yes, you read me correctly) I meant it doesn't always hold true. As with most formulas (and this is especially true for economic ones), in practice they don't always work as mathematics put in them dictates. Regarding this one, increasing money supply doesn't necessarily lead to price inflation (even if other factors are constant) as happens, for example, in a liquidity trap...