This is a very worrying chart from the excellent GaveKal research team. Declining velocity of money is the most difficult problem for central banks to overcome. Putting money into the banking system does no good if no one is using it.
From Wikipedia:
The velocity of money is the average frequency with which a unit of money is spent. When the period is understood, the velocity may be present as a pure number; otherwise it should be given as a pure number over time. In the equation of exchange, velocity of money is one of the key variables determining inflation.
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