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Financialization And Income Velocity Of Money
[Financiarisation et vitesse de circulation de la monnaie]

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  • Christian Aubin

    (CRIEF [Poitiers] - Centre de recherche sur l'intégration économique et financière - UP - Université de Poitiers = University of Poitiers)

Abstract

This paper reconsiders the Fisherian equation of exchange by explicitly distinguishing two types of transactions associated with industrial circulation, on the one hand, and financial circulation, on the other. In this context, a formal link can be established between the financialization of the economy and the downward trend in the income velocity of money during the last decades.

Suggested Citation

  • Christian Aubin, 2021. "Financialization And Income Velocity Of Money [Financiarisation et vitesse de circulation de la monnaie]," Working Papers hal-03494603, HAL.
    • Handle: RePEc:hal:wpaper:hal-03494603
    Note: View the original document on HAL open archive server: https://hal.science/hal-03494603
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    References listed on IDEAS

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    1. Milton Friedman, 1971. "A Theoretical Framework for Monetary Analysis," NBER Books, National Bureau of Economic Research, Inc, number frie71-1.
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    Keywords

    money; quantity theory of money; equation of exchange; velocity of money; financialization; monetary policy;
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