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:
“It is said the city was spared a golden-oak period because its residents, lacking money to buy the popular atrocities of the nineties, necessarily clung to their rosewood and mahogany.”
—Administration in the State of Sout, U.S. public relief program (1935-1943)