Money velocity is a measure that I put a lot of importance in. I am astounded that it’s not more of a topic and that many economists don’t really even follow it anymore. I consider it the canary in the coal mine and when you consider that we are a consumer economy (I guess the numbers are down from the 70% everyone used to quote .. I recently heard 67%) there are fewer more important measures. Thanks for writing about it.
It’s a hard number to budge but I do believe that things like increasing the minimum wage and expanding benefits like health care to the middle class will have the effect of increasing money velocity.
Do you have any thoughts on increasing money velocity?