You just had Lacy Hunt on and he's very strong on what the issues of
falling velocity of money are.
That's what allows a standard of living to increase and when that doesn't happen, investments start to slow and you get falling capital expenditure and
a falling velocity of money.
Not exact matches
A passive tightening
of monetary policy occurs whenever the Fed allows total current dollar spending to
fall, either through a endogenous
fall in the
money supply or through an unchecked decrease in
money velocity.
In the face
of numerous Fed attempts to spur growth, one measure
of economic activity, the
velocity of money, has continued to
fall.
Velocity of money fell yet again in the second quarter, based on the most recent estimate
of gross domestic product.