velocity of money

30 Dec 2014

Let us not pop the champagne just yet!

by hedgopia | posted in: Credit, Economy | 0

One of the perplexing things in the current economic cycle has been the suppressed velocity of money. Six years into recovery, velocity has yet to pick up steam. As the chart below shows, excess reserves have gone toe-to-toe with the … Continued

28 Nov 2014

Suppressed velocity in times of aggressive monetary expansion worrisome

by hedgopia | posted in: Economy | 0

Velocity of money one of two components to determine GDP Six years into U.S. economic recovery, velocity remains way suppressed Inability of velocity to rise during monetary expansion raises disinflation/deflation risks It is troubling how this late into the cycle, … Continued