Abstract

AbstractThe income velocity of money expresses a unique relationship – what is the production that an economy can create with a given money stock or how much money is needed to create a given production. The aim of this chapter is to elaborate on the factors that are behind the money velocity. An overview of the potential determinants of money velocity will be presented together with a brief description of the determinants. Where available, data relevant for the Czech Republic are presented. The examined period is 2000–2018, when the money velocity experienced a gradual decline.KeywordsVelocity of moneyMoney supplyHousehold finance

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