Sentences with phrase «money velocity»
The phrase "money velocity" refers to the speed at which money circulates or moves through the economy. It measures how quickly people spend money, which indicates economic activity. If money velocity is high, it suggests that money is frequently changing hands and the economy is active. On the other hand, if money velocity is low, it means people are holding onto money and not spending as much, indicating a slower economy. Full definition
The year - over-year change in money velocity is our favorite indicator because it's been quite accurate for more than 20 years.
morganstanley.com
The opposite is also true: Money velocity decreases when fewer transactions are being made; therefore the economy is likely to shrink.
They do this to minimize the amount of savings to promote money velocity versus wealth creation.
Hard to see where inflation is going to come from, as demographics dictate falling money velocity and interest rates.
They want inflation to happen so they can turn this whole money velocity downfall around.
The last time we witnessed such dramatic drops in money velocity?
Mauldin explains money velocity with characteristic Texas bluntness: «If you print money but it doesn't go anywhere, you won't get inflation.»
Just as a k - percent rule requires a stable relationship between a monetary aggregate and nominal GDP (i.e., stable money velocity), a Taylor Rule needs a stable relationship between the policy rate and financial conditions.
When money velocity slows so does economic activity.
As noted above, this passive tightening in monetary policy implies there would be a decline in the money supply and money velocity occurring during this time.
The Virgin Money Velocity cards have a longstanding feature whereby there were 4 complimentary flights available per year.
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.
As the chart below shows, money velocity (dark blue line) typically leads core inflation (light blue line) by 21 months.
Money velocity has plummeted and keeps plummeting, for some reasons we understand and some we don't.
** Whether knowingly or not, anyone who treats «money velocity» as if it were a genuine and measurable economic driver is an advocate of the QTM, because «V» does not exist outside the tautological and practically useless Equation of Exchange.
But all the money Velocity Micro saved on flash is passed on to you.
And we have not even touched upon using Infinite Banking to maximize your policy and provide you with money velocity.
If for some reason the money velocity declines rapidly during an expansionary monetary policy period, it can offset the increase in money supply and even lead to deflation instead of inflation.
Based on this equation, holding the money velocity constant, if the money supply (M) increases at a faster rate than real economic output (Q), the price level (P) must increase to make up the difference.
The calculation cited above arriving at that BTC = $ 50,000 is implicitly assuming a money velocity of 1, which goes against the Silicon Valley vision of a Bitcoin - as - payments unit that people swap in and out of via intermediaries like Coinbase and BitPay.