Question

Suppose that a researcher discovers that a measure of the total amount of debt in the U.S. economy over the past twenty years was a better predictor of inflation and the business cycle than M1 or M2. Does this discovery mean that we should define money as equal to the total amount of debt in the​ economy?

Answer 1

No

Step-by-step explanation:

Researchers cannot control total debt and this relationship works one period and won't work on another period.