[Baraonda]

Forgive my ignorance, but the velocity of money has it any thing to do with the money multiplier?

Thanks.

[groanup]

"Forgive my ignorance, but the velocity of money has it any thing to do with the money multiplier?"

I used to know all that stuff but it didn't serve me so I forgot it. The velocity of money is the rate at which money moves through the system, ie, the rate at which you spend or save your money. If you spend it, then someone else will spend your money and etc. If you save it then the velocity slows down. Anyone else have a better explanation?