Friday, 26 October 2012

Velocity of U.S. M2 Money Stock falls to Historic Low in Q3-12

The velocity of U.S. M2 Money Stock fell to a historic low of 1.568 according to date released today by the Federal Reserve Bank of St. Louis. This was a decline of 2.8% on last year and was 16.3% lower than the median based on data since 1981. The historic low figure is due to the unprecedented increases in M2 money supply witnessed in recent years.


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