His study documents that a higher Fed Funds rate would increase the velocity of the monetary base.

FORBES: An "All-In" Bet By Fed Chairman Ben Bernanke

Those higher rates would encourage banks to maintain their excess reserves at the Fed, thereby slowing the increase in velocity associated with a higher Fed Funds rate.

FORBES: An "All-In" Bet By Fed Chairman Ben Bernanke

The quantity theory of money holds that the money supply, multiplied by the rate at which it circulates (called velocity), equals nominal income.

ECONOMIST: Economics focus

When M2 velocity falls, consumers, businesses and investors are slowing the rate at which they spend and invest their money.

FORBES: Goodbye Recovery, Hello Recession