The Velocity Of Money Circulation Myth

Source: Cobden Centre
by Dr. Frank Shostak

“For most economists the velocity of money circulation is an important factor in determining the prices of goods and services. If, for example, it was found that the quantity of money increased by ten percent in a given year, while the price level has remained unchanged it would mean that there must have been a decline of about ten percent in the velocity of money circulation. … Does the concept of velocity of money circulation make sense?” (09/22/22)