This anomalous behavior of velocity severely set back most analysts’ confidence in the usefulness of M2 as an indicator of economic developments. In recent years, there have been tentative signs that the historical relationship linking the velocity of M2 -- measured as the ratio of nominal GDP to the money stock -- to the cost of holding M2 assets was reasserting itself.
And as we gain confidence in the strength of the recovery, the pace of net purchases of Government of Canada bonds will be adjusted as required. We remain committed to providing the appropriate degree of monetary policy stimulus to support the recovery and achieve the inflation objective. Let me stop there, and turn to you for questions. 2/2  BIS central bankers' speeches