Theoretical and Empirical Analysis on Momentum Money and Traditional Measures of Money

Traditional monetary aggregates have long been challenged by theory and practice with un-succeeded reforms in mainstream countries. The theoretical ground of the reforms of the measure of money till now is basically wrong, with neglecting transaction function and over stressing assets function. Absolute static state does not exist in the universe. The nature of money is motional. Specific theorems in physics are eligible analogues to economics expressions. The author advances a new measure of money-momentum money based on the quantity and transaction velocity of money. Primary positive analysis is meaningful. Western scholars refuse the actual velocity of money. There exist serious gaps in macro-economics framework.