The US velocity of money, as measured by the M2 money stock ratio quarterly seasonally adjusted, has declined to 1.374, the lowest level since at least 1960s, as per the data tweeted by Jeroen Blokland, Portfolio Manager for the Robeco Multi-Asset funds. The velocity of money equals the average number of times an average dollar is used to buy goods and services per unit of time. Inflation depends on growth in the money supply and velocity of money. While the Federal Reserve has increased the money supply by leaps and bounds over the years and more so recently to ensure the smooth functioning of credit markets amid the coronavirus crisis, the velocity of money has tanked. As a result, a sharp rise in inflation looks unlikely. Even so, gold, a hedge against inflation, could continue to rise on the back of the Fed’s unprecedented balance sheet expansion. The yellow metal has already gained over 10% this year and was last seen trading at $1,730 per ounce. FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next China central bank governor Yi Gang says the prudent monetary policy will be more flexible FX Street 3 years The US velocity of money, as measured by the M2 money stock ratio quarterly seasonally adjusted, has declined to 1.374, the lowest level since at least 1960s, as per the data tweeted by Jeroen Blokland, Portfolio Manager for the Robeco Multi-Asset funds. The velocity of money equals the average number of times an average dollar is used to buy goods and services per unit of time. Inflation depends on growth in the money supply and velocity of money. While the Federal Reserve has increased the money supply by leaps and bounds over the years and more so recently to ensure… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.
