1.2Economics The rate at which money changes hands within an economy.
‘He assumed no international trade effects, an unchanged money supply and a constant velocity of circulation.’
‘John Maynard Keynes challenged the theory in the 1930s, saying that increases in money supply lead to a decrease in the velocity of circulation and that real income, the flow of money to the factors of production, increased.’
‘Time and money appear as commensurate albeit inverse values because of the effect of the velocity of circulation on the accumulation of capital.’
‘The trouble is that all these measures of money cannot be relied on because the velocity of money changes.’
‘The velocity of circulation was assumed to be unchanged.’
Origin
Late Middle English from French vélocité or Latin velocitas, from velox, veloc- ‘swift’.
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