In the United States, the velocity of both the M1 and M2 money supplies has been declining for over a decade.
The decline in the velocity of M1 could be explained by the shift away from cash to cards and online payments.
What are the causes and implications of the decline in the velocity of M2?
Does it signify that the money supply is growing faster than GDP? If so, is real GDP declining? Does it indicate some sort of lack of liquidity? How does this relate to interest rates?