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  • Demand for Money vs. Velocity of Circulation

    What's the difference and connection between the two? First, demand for money can be measured at any instant, whereas velocity of circulation can be computed only over a period of time, where it can mean the average amount of money that changes hands. Second, suppose that demand for money has increased...
    Posted to Economics Questions (Forum) by dchernik on Sat, Apr 5 2008
  • Re: Money as Real Indicator

    Don't forget that in a society where the money supply remains level and the population rises, the velocity of exchange will inevitably rise also due to the increased demand for goods to service the increased population, creating a tendancy for the price level to remain stable even though the tendancy...
    Posted to Economics Questions (Forum) by Donald Lingerfelt on Fri, Nov 30 2007
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