money velocity, defined as the ratio of nominal income to money. The purpose of the present study is to show that if short …-run cyclical factors are accounted for, money velocity function becomes stable and thus any change in monetary aggregates will lead … methodology to conduct empirical analysis. Findings show that money velocity and all its identified determinants exhibit pro …

postulates that innovations generate transactional cost savings by comparison to barter. The optimal velocity of money is derived … equal to the growth rate of velocity leads to an inflation rate near 2% and is akin to pursuing the Friedman k-% rule. This …