If that were true, then recessions and depressions would be impossible. The velocity of money moving through the economy would be a constant, like the speed of

If that were true, then recessions and depressions would be impossible. The velocity of money moving through the economy would be a constant, like the speed of light. But recessions and depressions happen, so we know that the disappearance of certain transactions from the economy can have a negative macroeconomic effect.