Enter the GDP and the money supply into the calculator to determine the velocity of money.
Velocity of Money Formula
The following formula is used to calculate velocity of money.
VoM = GDP / MS
- Where VoM is the velocity of money
- GDP is the gross domestic product
- MS is the money supply
Velocity of Money Definition
A velocity of money is defined as the ratio of the gross domestic product of a country to it’s money supply. In other words how fast money moves through it’s economy.
Velocity of Money Example
How to calculate the velocity of money.
- First, determine the GDP.
Calculate the GDP using the calculator linked above or through research. For this example we will say the GDP is $1,000,000.00 (This is not realistic and will be much more for most countries).
- Next, determine the money supply.
For this example we will assume the money supply is $500,000.00.
- Finally, calculate the velocity of money.
Using the formula we find the velocity of money to be 1,000,000/500,000 = 2 (200%)
Velocity of money is the measure or the rate at which money is moved or exchanged throughout in the economy of a given country. It can also be used to describe the number of times a unit of a specific currency is used in a given time.
|velocity of money calculator|
|velocity of money formula|
|how to calculate velocity of money|
|velocity of money|
|the velocity of money is|
|velocity of money equation|
|velocity of money definition|
|income velocity of money|
|the velocity of money|
|the velocity of money is defined as|
|velocity of money chart|
|the velocity of money is the|
|the velocity of money is equal to|
|define velocity of money|
|velocity of money and inflation|
|how to find velocity of money|
|transaction velocity of money|
|fred velocity of money|
|velocity of money 2018|
|current velocity of money|
|us velocity of money|
|income velocity of money formula|
|how to calculate velocity of money with nominal gdp|
|velocity of m2 money stock|
|m2 money velocity|
|velocity and the quantity equation|
|velocity of money economics|
|velocity of money example|
|factors affecting velocity of money|
|velocity of money fred|
|money supply velocity|
|velocity of money inflation|
|velocity of money macroeconomics|
|velocity of money definition economics|
|the definition of the transactions velocity of money is|
|velocity of money and interest rate|
|how to calculate velocity in economics|
|meaning of velocity of money|
|velocity formula macroeconomics|
|velocity of money graph|
|velocity of circulation of money formula|
|money velocity and income|
|money supply and velocity|
|velocity of cash|
|velocity of money pdf|
|how to calculate nominal gdp with velocity of money|
|constant velocity of money|