THE INCOME VELOCITY OF MOENY: SOME THEORETICAL AND EMPIRICAL ASPECTS

Abstract

“Velocity of money is a ‘purely statistical concept’ of no causal significance, which varies automatically with changes in the quantity of money in relation to total expenditure,” as concluded in the late 1950s by the well‐known Radcliffe Committee in Great Britain (Kaldor, p. 19). This view, although it has been supported from time to time by prominent economists such as Kaldor and Kahn, is not generally accepted. Velocity and its ‘stability,’ which is closely related to the stability of the demand for money, are considered by many economists to be very important in economic affairs and to constitute an important foundation of the monetarist doctrine.

Citation

KAREKLAS, P. (1985), "THE INCOME VELOCITY OF MOENY: SOME THEORETICAL AND EMPIRICAL ASPECTS", Studies in Economics and Finance, Vol. 9 No. 2, pp. 37-60. https://doi.org/10.1108/eb028657