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Velocity
(redirected from velocities)

    Also found in: Dictionary/thesaurus, Medical, Encyclopedia, Wikipedia, Hutchinson 0.01 sec.
Velocity
The number of times a dollar is spent, or turns over, in a specific period of time. Velocity affects the amount of economic activity generated by a given money supply.
Velocity
The number of times money goes through different transactions. That is, velocity measures the number of times money changes hands over a given period of time, often a year. It is calculated by dividing GDP or GNP by the total money supply. Velocity is an important measure of the demand for money, which is in turn used by central banks in determining monetary policy.


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