Klein determined that it was related to the H/M [H-over-M] ratio while, in Tobin's review of Friedman's Monetary History, he attributed the fall in this value from 1880 to 1915 to the spread of commercial banking.
Klein determined that it was related to the H/M [H-over-M] ratio while, in Tobin's review of Friedman's Monetary History, he attributed the fall in this value from 1880 to 1915 to the spread of commercial banking. Irving Fisher famously predicted that this quantity would rise with increasing level of technology and Keynes attacked the concept, claiming that it was not independent of the level of money stock. It can be defined as the ratio of GNP to the supply of money, but it is more often given as P times Q divided by M in the quantity theory of money. FTP, name this term, defined as the rate at which money changes hands, which in physics refers to a speed with direction.
Klein determined that it was related to the H/M [H-over-M] ratio while, in Tobin's review of Friedman's Monetary History, he attributed the fall in this value from 1880 to 1915 to the spread of commercial banking.
velocity of money