Technology Beyond the effect of technology in contributing to greater price transparency and facilitating increased competition in the retail sector, it has obviously had a direct effect on the prices of a number of retail goods, most obviously audiovisual and communication goods such as TVs, computers and phones.
Hallman, Porter, and Small (1991) analyzed the predictive power of that relationship under the assumption that M2 velocity is a constant - an assumption that seemed reasonable at the time they wrote, but, as these things are wont to do, broke down soon after they did their initial work.