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Quantity theory of money

In economics, the velocity of money refers to a key term in the quantity theory of money, which centers on the equation of exchange:

M*V = P*Q

where

M is the total amount of money in circulation in an economy at any one time (say, on average during a month).

V is the velocity of money, i.e., how often each unit of money is spent during the month. This reflects financial institutions and other economic conditions.

P is the average price level for the economy during the month.

Q is the total number of items purchased during the month with the particular kind of money represented by M

see also Rating Calculation Future value double money with a given interest WACC - Weighted average cost of capital Ordinary Annuity newest formulas Acceleration Calculating a weighted average Pregnancy Date Calculator Fill the yellow fields to see the result in the green fields!   A B C D E 1 M          2 V          3 P          4 Q          was this helpful ? see also: http://en.wikipedia.org/wiki/Quantity_theory_of_money link: http://formularium.org?go=53 (use this link to publish this page) Export:  Excel-Export Script: <script src="http://formularium.org/js.php?go=53"></script> (use this script to include this spreadsheet onto your own webpageExport)   (source: Quantity theory of money. (2006, November 3). In Wikipedia, The Free Encyclopedia. Retrieved 14:46, November 7, 2006, from http://en.wikipedia.org/w/index.php?title=Quantity_theory_of_money&oldid=85453274) did you know that you can integrate any formula into your own homepage? try it! insert this code into your page: <script src="http://formularium.org/js.php?go=53"></script>