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Strategies & Market Trends : 50% Gains Investing
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To: Sober who wrote (72005)2/2/2009 11:19:27 AM
From: tom popeRead Replies (1) of 118717
 
I can't do better than plagiarize Investopedia. For practical purposes it means that if velocity picks up, so will inflation as it works on that huge pile of M2.


What Does Velocity of Money Mean?
A term used to describe the rate at which money is exchanged from one transaction to another.

Velocity is important for measuring the rate at which money in circulation is used for purchasing goods and services. This helps investors gauge how robust the economy is. It is usually measured as a ratio of GNP to a country's total supply of money.
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