Discover how the equation of exchange links money supply, velocity of money, and price levels, influencing inflation and economic activity. Learn key formulas and impacts.

The velocity of money measures how quickly money circulates in an economy. Calculated as GDP divided by money supply, it indicates economic activity and spending habits. High velocity suggests robust ...

One of the most debated concepts in economics is the velocity of money. Simply put, the velocity of money measures the number of times a unit of money is used to purchase goods and services within a ...