Nunes, Ana BelaSt. Aubyn, MiguelValério, NunoSousa, Rita Martins de2018-07-032018-07-032018-07Nunes, Ana Bela ... [et al.] .(2018). "Determinants of the income velocity of money in Portugal: 1891–1998". Portuguese Economic Journal, Volume 17, No 2: pp. 99-1151617-982X (print)1617-9838 (online)http://hdl.handle.net/10400.5/15789This paper performs a long-run time series analysis of the behaviour of the income velocity of money in Portugal between 1891 and 1998 by assessing the importance of both macroeconomic and institutional factors and looking for particularities in the Portuguese case. We estimate two cointegration vectors for the income velocity of money, macroeconomic variables and institutional variables. It is apparent that one of these vectors reflects the relationship between income velocity and macroeconomic variables, while the other reflects the relationship between income velocity and institutional variables. Moreover, a regression analysis reveals that the usual U-shaped pattern is displayed with a relatively late inflection point located around 1970, which is consistent with the Spanish case. It is further noted that this is a feature of countries with a late economic and institutional development process.engVelocity of MoneyPortugalCointegrationInstitutional Determinantsjournal article10.1007/s10258-017-0141-1