Oct
22

Moving Money

The velocity of money is the number of times a unit of currency is used to buy domestically produced goods and services during a fixed period of time. The velocity of M1 (cash and checking accounts) has fallen by 38% since the start of the Great Recession, while M2 (M1 plus savings accounts, CDs and money market accounts) has declined by 19%. Note, QE has not substantially altered these numbers.

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