Mechanical Analyses and Derivations of Money Velocity


 Abstract. The equation of exchange is derived from a standpoint encompassing the physics and economics thereof, whereby maximisation money value function, increasing in real output decreasing supply, while accounting for time space, subjected to constraint, at macroeconomic level, gives rise an optimal level thereby, expressing liquidity demand coefficient as inverse quotient space over time. fusion such expression with which equilibrium Cambridge equation, turn being position money, whose differentiation precisely instantaneous velocity thence presented by Fisher. present analysis also derives on account non-constant instantiated Fisher, advancing framework macroeconomy’s general function constraint process. It likewise advances simulations average velocity, particular application stylised closed macroeconomy. finally proceeds remodel through use ordinary differential equations (ODEs) motion, both generally, letting sum three equal corrected exponential random walk drift, force model, free accumulation financial assets resistance. This work thus remarks that customarily calculated, taught understood not univocal.