QTM - Equation of Exchange - Inflation Target for China vs USA

External question — Economics Stack Exchange Author: Sandro Balestrino Original post: https://economics.stackexchange.com/questions/59835 License: CC BY-SA 4.0 — https://creativecommons.org/licenses/by-sa/4.0/ Adaptation: HTML converted to plain text; contact email addresses removed. The economist Steve Hanke describes his "golden rule" for the rate of increase in the money supply (6% growth of M2) that is consistent with a 2% rate of inflation for the USA. Here he also sets velocity at -2% and rGDP at 2%. On the other hand he explains that China needs to grow its money supply at 11% in order to be consistent with a 3% inflation rate. My question is how does he arrive at these "target" inflation rates for each country?