How does the money velocity effecting debt
Can you elaborate on the relationship between money velocity and debt? Thanks.
I think the velocity of money is an outdated concept that doesn't mean very much. For example, part of it simply depends on technology. Once upon a time you needed to pay everything via paper checks that took days to clear. In that case you need to hold more money in your account. But today when payments are instant you don't need as much money in your checking account. See this post for more thoughts.