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 ?
Winchester, to its credit, published more realistic velocities than other manufacturers and still listed its .
By 1977, SAAMI had set new guidelines for barrels used to catalog velocities for the .
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.
To find velocities that high is really very surprising," agrees Donald E.
The greater the range of velocities, the greater the smearing.
At that distance, Matthews calculates, the velocities of Proxima and Alpha must match within 1 percent for astronomers to conclude that they form a single system.