Velocity

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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 of Money

The rate at which money changes hands. For example, assume an economy with $100 and two people in it. In a given year, if Person A charges Person B $50 for a widget, and Person B charges Person A $100 for a whatsit, then $150 worth of transaction has occurred even though there are only $100 in the economy. This means that, on average, one dollar is spent one and a half times in a year, expressed as a velocity of 1.5/year. Velocity of money is useful as a measure of how strong and/or liquid an economy is, and it is usually compared with some figure such as GDP or money supply.
References in periodicals archive ?
In ductile iron castings, a range of velocities can be found for the same nodularity percent.
Rather than springs, the design uses electromagnets to actively control impact velocities.
In the UFUT castings, turbulent filling at high velocities produced a shrinkage pattern in the casting - forming as cracks throughout the plate.
Moreover, the velocities fluctuate wildly on a timescale shorter than 10 minutes, note Claude Emerich of the Institute of Spatial Astrophysics in Orsay, France, and the Institute of Astrophysics in Paris, John T.
Recent SOHO measurements reveal that ionized atoms in some parts of the corona reach velocities greater than 200 kilometers per second.
Because Proxima and Alpha lie near each other and move through the galaxy at similar velocities, most astronomers believe they form a single system.