Download or read book Theory and Experiment on Momentumized Money written by Jiang Tao and published by . This book was released on 2011 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Simple sum monetary aggregate has long been questioned by theory and practice. The reforms of the measure of money initiated half century ago have not yet achieved ideal goal. In this paper, the author questions the theoretical ground of the reforms, discusses philosophy and economics principles for momentumized money (MTM). Three measures of monetary aggregates are tested in a comparative experiment on the relation between money and nominal GDP, which shows that MTM possesses absolute superiority over other selected measures and that the soul of money is its transaction velocity. Finally the author puts forward a theory of demand for momentumized money and an inflation hypothesis for further empirical tests.