According to the theory of regulation, money is a social institution which finds its place in basic economic relationships. This differs from orthodox (neo-classical) economics which separates money ...

So the velocity of circulation is falling as households and firms want to hold more cash and equivalents rather than spend it, invest it in riskier assets or borrow.

The U.S. government is phasing out the penny, whose use has spanned more than two centuries. The Treasury Department will stop putting new pennies into circulation by early next year. Afterward ...