Home  Journals  Financial Analytics: Science and Experience  21(207) - 2014 June

Velocity of money circulation as an indicator and stabilizer in modern market economy

Available online: 13 June 2014

Subject Heading: ISSUES ON ECONOMICS

JEL Classification: 

Pages: 2-7

The author suggests using such indicator as the velocity of money circulation to diagnose the national economy condition instead of widely used monetization of an economy indicator. This emphasizes the fact that in modern conditions cash cycle increasingly impacting the economy, changes its parameters and directions for the development. In its turn, government intervention leads to an unfounded increase in monetization of economy that is causing slowing of velocity of money circulation and crises.

Keywords: velocity of money circulation, indicator, built-in stabilizer, cash cycle, monetary circulation law

References:

1. Aleksandrov D.G. Infliatsiia. Nemonetarnyi aspekt: ucheb. posobie [Inflation. Non-monetary aspect:a manual]. Moscow, Gubkin Center of Russian State University of Oil and Gas Publ., 2011, p. 60.
2. Marks K. Kapital. Polnoe sobranie sochinenii K. Marksa i F. Engel'sa [Capital. Complete Works of Marx K. and Engels F.]. 2nd edit., vol. 24, pp. 31–137.
3. Mitchell U.K. Ekonomicheskie tsikly. Problema i ee postanovka [Business cycles. Problem and its presentation]. Moscow, Leningrad, 1930, pp. 63, 186.
4. Ekonomicheskaia teoriia (politekonomiia): uchebnik [Economic theory (political economy): a manual]. Moscow, Russian Economic Academy Publ., 2000, pp. 439–440.

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