Income Velocity of Broad Money Index

The Income Velocity of Broad Money Index measures the frequency with which broad money (M3) circulates in the economy, usually defined as nominal GDP divided by M3. A higher velocity indicates that each unit of money is used more intensively to support economic activity, making the index a useful gauge of money demand and monetary conditions across Latin America and the Caribbean. The series is published in the Latin Macro Watch dataset maintained by the Inter-American Development Bank (IDB).

Coverage

Data are available for 23 countries across Latin America and the Caribbean at annual and quarterly frequency, spanning 1990 to 2026. Values are expressed as an index, including an index rebased to 2023 = 100. Standard transformations include quarter-over-quarter (QoQ %) and year-over-year (YoY %) growth rates.

Sources

The index is built from IDB internal calculations based on official monetary data from national authorities, including Banco Central do Brasil, Banco Central de Chile, Banco de la República de Colombia, Banco Central de Bolivia, and Bank of Jamaica, among other central banks and statistical agencies across the region.

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Format	CSV
Language	en
Country	Argentina Bahamas Trinidad & Tobago Belize Costa Rica Dominican Republic Ecuador Bolivia Brazil Chile Colombia El Salvador Jamaica Mexico Nicaragua Guatemala Guyana Haiti Honduras Panama Uruguay Venezuela Barbados Paraguay Peru Suriname
Data notes	What does the Income Velocity of Broad Money Index measure? It measures how frequently broad money (M3) circulates in the economy, usually defined as nominal GDP divided by M3. A higher velocity means each unit of money is used more intensively to support economic activity. How many countries and which periods are covered? The index covers 23 countries across Latin America and the Caribbean from 1990 to 2026, at annual and quarterly frequency. What units and transformations are available? Values are expressed as an index, including an index rebased to 2023 = 100. Available transformations are quarter-over-quarter (QoQ %) and year-over-year (YoY %) growth rates. Where does the data come from? The index is built from IDB internal calculations based on official monetary data from national authorities, including Banco Central do Brasil, Banco Central de Chile, Banco de la República de Colombia, Banco Central de Bolivia, and Bank of Jamaica. What are typical uses of this indicator? It is used to study money demand, monetary policy transmission, and the relationship between money supply and economic activity, and to compare monetary conditions across countries in the region. How do I cite this indicator? Inter-American Development Bank (IDB), Latin Macro Watch — "Income Velocity of Broad Money Index". data.iadb.org/dataset/latin-macro-watch-dataset.