RETAIL SALES DOWN AGAIN - WHAT ABOUT THE VELOCITY OF MONEY? (Originally from 2015)

(I believe the blog entry below was from March 14, 2015.)

CNBC reported this week that estimated U.S. retail sales declined again in February of 2015. Consequently, my expectation at this point would be that the velocity of the U.S. M1 money supply will decrease again in the first quarter of 2015. Another decrease in the velocity of M1 is particularly likely if both (1) nominal GDP spending continues to be tepid and (2) the money supply continues to grow at a brisk pace. We should receive an initial estimate of the velocity of M1 for the first quarter by late April or early May.