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To: Crossy who wrote (88394)	3/26/2010 7:26:33 PM
From: IRWIN JAMES FRANKEL	Respond to of 118717

>>the construct is difficult to measure and a starting point can probably be found on Wikipedia: en.wikipedia.org Crossy is right in saying that the velocity of money is a construct. In fact, it is totally theoretical. It has serious utility but it is not something that we can measure directly. In general, it is forced from the other factors in the equation that we THINK we can measure. At this point in economic development, I would suggest that even money supply in the broad sense is a construct and that we can no longer measure it with sufficient accuracy to maintain the utility it once had. I am not saying we are unable to measure traditionally defined components of the money supply. We can and still do that. The trouble is that money supply has morphed into forms that we do not track and measure. Even if we did, it will keep on morphing. :-) ij