The European Central Bank will start purchasing Bonds next week in the hopes of stimulating the EU economy. Their ambitions are not necessarily lower rates (which are at 310 year lows in France), but accelerating the velocity of money–getting the Euro to start spending their Euro. Mario Draghi would be a hero if he could get some of those Euros spent on gyros, thereby accelerating the economy in Greece–and the grease accelerating the cholesterol levels of the Euro. Consequently, the Euro spending more on medical care and the providers of medical care spending more Euro on the economy. That’s what we call the “velocity of money”.
