The velocity of money (also called velocity of circulation and, much earlier, currency) is the average frequency with which a unit of money is spent on new goods and services produced domestically in a specific period of time.
Click to enlarge.
The line in black shows the historical velocity of money stock going back to 1869. The line in red shows the velocity of the M2 money stock going back to 1959.
Note the downward trend since the late 1990s. What does this mean? The "poning" of hyperinflation theories will continue until morale improves!
Source Data:
St. Louis Fed: Custom Chart
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