velocity of money
number of times that money balances turn over in the economy. According to the monetarist theory of economics,the velocity of money should be the principal objective of Federal Reserve monetary policy .
Velocity of Money
Let M be the nominal stock of money, let P be the nominal price level, and let Y be the flow of real transactions (often proxied by real GDP). The equation of exchange
MV = PY, ...
Velocity of Money
Money is the modern mechanism for pricing and facilitating the flow of goods and services.
Velocity of Money
The amount of times a dollar is spent in a specific time period. Velocity affects economic activity produced by a given money supply, which includes bank deposits and cash in circulation.
Income velocity of money The number of times per year a dollar is spent on final goods and services; equal to GDP divided by the money supply.
Velocity of Money
A term used to describe the rate at which money is exchanged from one transaction to another.
Momentum Indicates Stock Price Strength
Measure Momentum Change With ROC ...
Velocity of money
The rate at which money changes hands in an economy, usually defined by the equation of exchange.
Vent for surplus ...
where V denotes the income-velocity of money (the number of times per year the average dollar turns over in transactions for final goods and services), and y denotes the economy's real income (as measured, e.g., by real GDP).
Economic termonology like "labour force", "equilibrium", "elasticity", and "velocity of money" are no accident.
The concept of "income velocity of money" was first explained by the economist Irving Fisher in the 1920s as bearing a direct relationship to Gross Domestic Product (GDP). Velocity usually is measured as the ratio of GDP to the money supply.
EQUATION OF EXCHANGE: An equation that specifies the relation between the money supply, the velocity of money, the price level, and real production.
To take a shot at predicting, say, when inflation will hit hard, you need to have a reading on an economic indicator know as the velocity of money. This is an esoteric yet easy to grasp concept that can be explained in a couple of sentences.
Where:
M represents the money supply.
V represents the velocity of money.
P represents the average price level.
T represents the volume of transactions in the economy.
Quantity equation - The equation M x V = P x Y, which relates the quantity of money, the velocity of money, and the dollar value of the economy's output of goods and services.
quantity equation of money the equation relating the price level and real GDP to the quantity of money and the velocity of money: The quantity of money times its velocity equals the price level times real GDP; ...
- is the percent change in the velocity of money;
Equation (2) identifies the money growth target (intermediate target) compatible with the goal target ().
 See also: Velocity, Banks, Values, Saving, Quantity theory of money
  
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