Friday, 28 September 2012

Velocity of M2 Money Stock hits All-Time Record Low

The velocity of the M2 money stock in the U.S. for Q2 2012 hit 1.574 according to figures released today by the St. Louis Federal Reserve. The figure is the lowest ever reported for the data series which started in 1959. The low figure is first and foremost due to aggressive money printing by the Fed over the last four years or so (see here). M2 money stock increased 6.6% for the quarter on last year while Nominal GDP increased 3.9%.


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