velocity of circulation


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velocity of circulation

n
(Economics) the average number of times a unit of money is used in a given time, esp calculated as the ratio of the total money spent in that time to the total amount of money in circulation
References in periodicals archive ?
Instead, the speed at which money changed hands -- what economists call "velocity of circulation" -- increased dramatically.
It is noteworthy that the velocity of circulation of cash is lower than that of electronic payments, the cash flow is less transparent, and therefore more adapted to the shadow economy.
For example, using the Keynesian model in Chapter 3, the analyses correctly emphasized the fact that increase in black income tilts the income distribution in favour of the profit earners and assumed higher marginal propensity to consume and velocity of circulation of money of these incomes.
This is because the velocity of circulation of money is increasing as a result of a shift towards electronic payments.
In particular, figure A1 in the appendix (which reproduces figure 2b from their paper) plots the inverse of the velocity of circulation of currency versus the three-month Treasury bill at an annual frequency.
Nominal GDP is money supply times velocity of circulation (the number of times money changes hands).
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