Home > Term: velocity of circulation
velocity of circulation
The speed with which money whizzes around the economy, or, put another way, the number of times it changes hands. Technically, it is measured as GNP divided by the money supply (pick your own definition). It is an important ingredient of the quantity theory of money.
- Part of Speech: noun
- Industry/Domain: Economy
- Category: Economics
- Company: The Economist
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- summer.l
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