Monetary targeting served as a useful tool for conducting monetary policy until 1980s, but the instability in the relationship between money and nominal income led to its abandonment by most economies. One way of measuring this relationship is money velocity, defined as the ratio of nominal...

This chapter analyzes the utility of the cycle of money without escaping savings. The examination of the utility of the cycle of money without escaping savings is plausible through the utility of companies and the utility of the authorities. Then, in this scrutiny a simple system of derivatives...

The rise of inflation in 2021 and 2022 surprised many macroeconomists who ignored the earlier surge in money growth because past instability in the demand for simple-sum monetary aggregates had made these aggregates unreliable indicators. We find that the demand for more theoretically-based...

This paper is about the comparison of the velocity of the cycle of money with the velocity of financial liquidity in the case of mixed savings. This analysis is based on the cycle of money in combination with the velocity of maximum escaped savings with the velocity of financial liquidity with...

This article provides a macro-foundation for why the specific value of 2% is a valid inflation target. The approach postulates that innovations generate transactional cost savings by comparison to barter. The optimal velocity of money is derived as a function of productivity growth and of...