Velocity of Money Calculator
Posted by Dinesh onThe velocity of money is a measure of the number of times that the average unit of currency is used to purchase goods and services within a given time period. This calculator calculates the velocity of money for all transactions using price level,transactions,total nominal amount values.
Velocity of Money For All Transactions Calculation
Formula:
VT = PT / M
where,VT = velocity of money for all transactions in a given time frame
P = price level
T = aggregate real value of transactions in a given time frame
M = total nominal amount of money in circulation on average in the economy