Velocity Of Money Chart
Velocity Of Money Chart . The velocity of money is the frequency at which one unit of currency is used to purchase domestically- produced goods and services within a given time period. The lower chart shows how lending has contracted dramatically. Will the Velocity of Money Increase in 2016? | The Money Enigma (Allie Stevens) There is no question that the investment strategy has been shifting more towards the short-term. Note that the Velocity of Money slows during recessions, and the slowdown can linger for many months. It can be thought of as the rate of turnover in the money supply--that is, the number of times one dollar is used to purchase final goods and services included in GDP. Thus Velocity of Money= GDP ÷ Money Supply. It means families, businesses, and the government are not using the cash on hand to buy goods and services as much as they used to. The Velocity of Money: 2019 Edition