The objective of this study is to determine the effects of inflation, the money supply (MS), interest rates, and GDP on the velocity of money. A correlational method was used in this study. Multiple linear regression analysis was employed as the data analysis technique. The conclusions of this study are: 1. Inflation, when considered in isolation, does not have a significant effect on the velocity of money; 2. The money supply, when considered in isolation, has a significant and negative effect on the velocity of money; 3. The Bank of Indonesia’s benchmark interest rate (BI Rate) does not have a significant isolated effect on the velocity of money; 4. Gross Domestic Product (GDP) does not have a significant partial effect on the velocity of money. To improve the quality and capacity of the velocity of money through inflation, the money supply (MS), interest rates, and Gross Domestic Product (GDP), the following steps need to be taken: 1. The government and Bank Indonesia need to focus more on optimally controlling the money supply. Monetary policy should be directed toward maintaining a balance between adequate liquidity and the efficiency of money circulation; 2. Strengthening the infrastructure of digital payment systems and financial inclusion is crucial for promoting healthy and efficient money circulation; 3. Bank Indonesia needs to improve the effectiveness of the transmission of the BI Rate to the real sector. This can be achieved by strengthening the banking sector, deepening financial markets, and improving financial literacy so that the public and businesses are more responsive to changes in interest rates; 4. The government must not only pursue quantitative GDP growth but also its quality. Growth based on productivity and inclusive economic activities will have greater potential to increase transaction frequency and the velocity of money; 5. Inflation stability is crucial for maintaining economic expectations. Consistent inflation control policies will create certainty, thereby making economic behavior more rational and supporting efficient money circulation in the long term.
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