Velocity
in sentence
113 examples of Velocity in a sentence
It had been a candidate to succeed money-supply targeting in the 1980’s, since it did not share the latter’s vulnerability to so-called
velocity
shocks.
CDSs magnified the size of the bubble by hugely speeding up the
velocity
of monetary circulation.
Other policymaking entities – particularly those with potentially more effective tools to help the economy reach escape
velocity
– need to act but are hampered by legislative impasse.
Compared with the region’s mostly sluggish performance over the last three decades, this looks like takeoff
velocity.
There are many reasons for this, but chief among them is the velocity, interconnectivity, and complexity of global, national, and even individual change.
When banks cut lending, the
velocity
of money declines and consumer prices fall, increasing the purchasing power of pensioners and fixed-rate investors.
Such sluggish performance is the economic equivalent of “stall speed” – the heightened vulnerability that aircrafts can encounter at low
velocity.
Economies grow at something much closer to their stall speeds, thus lacking the cyclical “escape velocity” required for a self-sustaining recovery.
To restore investment and credit to levels consistent with economic escape velocity, a recovering Greece will require two new public institutions that work side by side with the private sector and with European institutions: A development bank that harnesses public assets and a “bad bank” that enables the banking system to get out from under their non-performing assets and restore the flow of credit to profitable, export-oriented firms.
One reason for this is that banks are hoarding the additional money supply in the form of excess reserves, rather than lending it (in economic terms, the
velocity
of money has collapsed).
The crash is followed by a flight to safety, which is followed by a steep fall in the
velocity
of money as investors hoard cash.
And that fall in monetary
velocity
brings on a recession.
Should governments try to increase monetary
velocity
by selling bonds, thereby boosting short-term interest rates?
The US economy is certainly capable of reaching the “escape velocity” that the country needs if unemployment is to fall in a more definitive and lasting manner.
For example, special relativity asserts that the fundamental laws of physics remain the same when we view the world from a platform moving at constant
velocity.
For some observers, these factors were deemed sufficient to form the critical mass needed to propel the economy into escape
velocity.
Unless and until this cooperation materializes, the hope of achieving economic escape
velocity
will remain just that – a hope.
And as long as inflation remains low, the extra debt that a government issues is highly prized as a store of value, helps savers sleep more easily at night, and provides a boost to the economy, because it assists deleveraging and raises the
velocity
of spending.
But in the aftermath of the worst crisis and recession of modern times – when shocks can push an already weakened global economy to its tipping point a lot faster than would be the case under a stronger growth scenario – the escape
velocity
of self-sustaining recovery is much harder to achieve.
With Latin America’s two largest economies in a holding pattern on reform, it is that much more difficult for even the region’s high flyers, such as Chile, to achieve escape
velocity
into a sustained high growth orbit.
Both the
velocity
of upgrade and the secondary market for solar power could be improved by lowering the transaction costs associated with adopting new solar technology.
The bond channel doesn’t work when bond yields are already low; and the credit channel doesn’t work when banks hoard liquidity and
velocity
collapses.
Fiscal
velocity
may be considerable – that is, deficits may be large – but there is no sign of a brick wall ahead.
The idea of targeting nominal GDP has been around since the 1980’s, when many macroeconomists viewed it as a logical solution to the difficulties of targeting the money supply, particularly with respect to
velocity
shocks.
Global finance has been one of the most eager beneficiaries of these trends, using Internet networks not just as a tool to conduct operations with greater efficiency and velocity, but also as a means to circumvent state supervision.
The
velocity
of money (the frequency at which money is spent, or GDP relative to base money) continues to plunge to historic lows.
In this scenario, the primary surplus (which excludes interest payments) would “achieve ‘escape velocity’ magnitudes in absolute as well as percentage terms over time.”
Postponing the second consumption-tax increase seems like a good compromise between pushing Abenomics to escape
velocity
and maintaining long-run credibility.
Indeed, the credit channel is frozen and
velocity
has collapsed, with banks hoarding increases in base money in the form of excess reserves.
What is more likely, however, is that the drop in interest rates resulting from the interventions needed to expand the country’s supply of money would have put a brake on the
velocity
of money, undermining the proposed cure.
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