Velocity of Money Stock for United States
A14187USA163NNBR • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
1.68
Year-over-Year Change
11.33%
Date Range
1/1/1869 - 1/1/1966
Summary
The Velocity of Money Stock measures the rate at which the total money supply circulates through the economy. It is an important economic indicator that provides insights into economic growth and inflation.
Analysis & Context
This economic indicator provides valuable insights into current market conditions and economic trends. The data is updated regularly by the Federal Reserve and represents one of the most reliable sources for economic analysis.
Understanding this metric helps economists, policymakers, and investors make informed decisions about economic conditions and future trends. The interactive chart above allows you to explore historical patterns and identify key trends over time.
About This Dataset
The Velocity of Money Stock represents the speed at which the total money supply is used to purchase goods and services. It is calculated as the ratio of nominal GDP to the money supply, indicating how efficiently money is being used in the economy.
Methodology
The data is calculated by the U.S. Federal Reserve using national accounts data and monetary aggregates.
Historical Context
Policymakers and analysts use the Velocity of Money Stock to gauge the effectiveness of monetary policies and assess the relationship between the money supply and economic activity.
Key Facts
- The Velocity of Money Stock has declined over the past decade, indicating a slowdown in the circulation of money.
- High velocity is typically associated with inflationary pressure, while low velocity may signal economic stagnation.
- Policymakers monitor the Velocity of Money Stock to assess the effectiveness of monetary policy tools like interest rates and quantitative easing.
FAQs
Q: What does this economic trend measure?
A: The Velocity of Money Stock measures the rate at which the total money supply circulates through the economy, providing insights into economic growth and inflation.
Q: Why is this trend relevant for users or analysts?
A: The Velocity of Money Stock is an important indicator for policymakers and analysts to gauge the effectiveness of monetary policies and the relationship between the money supply and economic activity.
Q: How is this data collected or calculated?
A: The U.S. Federal Reserve calculates the Velocity of Money Stock using national accounts data and monetary aggregates.
Q: How is this trend used in economic policy?
A: Policymakers and analysts use the Velocity of Money Stock to assess the efficiency of money usage in the economy and the potential for inflationary or deflationary pressures.
Q: Are there update delays or limitations?
A: The Velocity of Money Stock data is published by the Federal Reserve with minimal delays, and it provides a comprehensive measure of money circulation in the U.S. economy.
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Citation
U.S. Federal Reserve, Velocity of Money Stock for United States (A14187USA163NNBR), retrieved from FRED.