Velocity of Money

The velocity of money (also called velocity of circulation and, much earlier, currency) is the average frequency with which a unit of money is spent on new goods and services produced domestically in a specific period of time. Velocity has to do with the amount of economic activity associated with a given money supply. When the period is understood, the velocity may be presented as a pure number; otherwise it should be given as a pure number over time.

Read more about Velocity Of Money:  Illustration, Indirect Measurement, Determination

Famous quotes containing the word money:

    There is a gigantic difference between earning a great deal of money and being rich.
    Marlene Dietrich (1904–1992)