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Since the early part of the recession in 2008, the Velocity of Money (M1) has dropped over 30%. Velocity measures how fast money changes hands within the economy. Having it slow significantly while the Fed boosts the M1 money supply suggests that added liquidity is not spurring economic activity or inflation…at least not yet.

Velocity is important for measuring the rate at which money in circulation is used for purchasing goods and services. Higher velocity means the same quantity of money is used for a greater number of transactions and is related to the demand for money. This data can help investors determine how healthy the economy is.

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About Best Florida Mortgage Company! Jim Marcinkowski

Mission Statement Our mission is to be the home financing partner that you trust to serve your family, friends and community. Through our family of dedicated mortgage professionals, our commitment is to deliver an exceptional experience. Our unwavering dedication to integrity, honesty and ethics is the foundation of all of our relationships. NMLS 182565, NMLS 1016
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