by Lee Adler, Wall Street Examiner
Here’s Why Everyone is Confused About Economism’s Most Useless Concept
The concept of Velocity (V) of money confuses people. It does so because “Velocity” is a misnomer. Velocity is the speed of an object in motion. Economists pretend that V represents the speed of transactions in the economy. It’s absolute horseshit. V of M has nothing to do with the speed of transactions. Nothing. Zero. Zilch. Nada.
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