A measure of economic strength that estimates the number of times an individual dollar changes hands in a given period of time. It is calculated by dividing gross domestic products (GDP) by money supply. Velocity is one tool the Federal Reserve open market Committee uses to manage monetary policy.
Browse by Subjects
Quantity Theory of Money
See All Related Terms »
American Psychological Association (APA):
Chicago Manual of Style (CMS):
Modern Language Association (MLA):