Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and ...
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 ...