THE EQUATION OF EXCHANGE—WHAT IS THE CURRENT VELOCITY OF MONEY? In the equation of exchange, MV PQ, the velocity of money, V, is found by dividing nominal GDP ( PQ) by M, the money supply. Calculate the velocity of money for the past 4 years. How stable was V during that period? Is V increasing or decreasing? Get current-dollar GDP data from the “Gross Domestic Product” section at the Bureau of Economic Analysis Web site, www.bea.gov/ . Find M1 money supply data (seasonally adjusted) at the Fed’s Web site, www.federalreserve.gov/, by selecting, in sequence, Economic Research and Data, Statistics: Releases and Historical Data, and Money Stock Measures—Historical Data.