What is the meaning of velocity?

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(1) the rate at which money flows from one transaction to another. The number of times money changes hands in a given time period. (2) the rate at which total money in circulation is spent on goods and services in a given time period (usually measured as the ratio of GNP to the money stock). Greater' velocity' thus means that a given amount of money is used for a higher dollar volume of transactions.

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APABarry Goldsmith. (2010). velocity. Retrieved September 24, 2026, from http://smartdefine.org/velocity/definitions/1166222
ChicagoBarry Goldsmith. 2010. "velocity" http://smartdefine.org/velocity/definitions/1166222 (accessed September 24, 2026).
HarvardBarry Goldsmith 2010, velocity, Smart Define, viewed 24 September, 2026, <http://smartdefine.org/velocity/definitions/1166222>.
MLABarry Goldsmith. "velocity" 21 October 2010. Web. 24 September 2026. <http://smartdefine.org/velocity/definitions/1166222>
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