Term:
Velocity (of money)
Definition:
The average number of times a measure of money (as captured, for instance, by a monetary aggregate) turns over within a specified period of time. The income velocity of circulation is typically calculated as the ratio of a monetary aggregate to nominal GDP.
Domain:
Finance
Source:
A glossary of terms used in payments and settlement systems, July 2001, Committee on Payment and Settlement Systems, Bank for International Settlements
