velocity of circulation

Suggest possible reasons for the increase in the velocity of circulation.

The velocity of circulation will rise if there is a reduction in idle balances.

As an identity, the quantity theory is no more than a way of calculating the velocity of circulation.

If people hold relatively more money, the velocity of circulation is thereby reduced, thus reducing the effect on aggregate demand.

Now suppose the velocity of circulation rises to 5 and the number of transactions increases to 40 million.

Monetarists argue that variations in the velocity of circulation (V) are predictable and moderately small, especially over the longer run.

This fall in the velocity of circulation of broad money may be explained in terms of several factors.

The monetarist assumption is that the velocity of circulation of broad money is more or less constant.

The velocity of circulation of money has slowed dramatically worldwide and demand has dropped likewise.

The velocity of circulation (V)

A policy of targeting money supply can therefore add to the volatility of the velocity of circulation (V).

Velocity of circulation ratios of M3 and M4.

Suppose the stock of money increases to £60 million, but that the velocity of circulation and number of transactions remain constant.

"the movement of prices, the quantity of commodities in circulation, and the velocity of circulation of money."

If the money stock (M) is only £500, then the average number of times each pound changes hands, the velocity of circulation (V) must be 10.

Since the value of transactions is £16 and the quantity of money is £8, the velocity of circulation is 2.

There has been a substantial variation in the velocity of circulation because of new developments within the financial services industry and this is merely another one of those.

This financial crowding out, as it is called, could be offset to some extent by an increase in the speed at which money circulates - the velocity of circulation.

But, as shown in Table 8, the velocity of circulation of M3 (and M4), in fact, fell considerably in the period between 1982 and 1988.

Suppose the money stock consists of only eight £1 notes, then what will be the velocity of circulation of the money stock during the week under consideration?

(Massey 1952) Confederate asset price stabilization policies appear to have increased the velocity of circulation, and counterproductively channeled inflationary pressures into other areas of the economy.

Annie is to be forgiven the remark, since he spent their honeymoon explaining his theory about the effect of velocity of circulation on the net growth of the money supply.

Shen Kuo (1031-1095), a minister of finance, was of the same opinion; in his understanding of the velocity of circulation, he stated in 1077:

Cramer, J.S. "velocity of circulation", The New Palgrave: A Dictionary of Economics(1987), v. 4, pp.

Nell, E.J. (1990) "Velocity of Circulation and the Mark-Up, Econmie Appliquee, Summer.