The velocity of money is defined as the ratio of the Nominal GDP to the liquid Money (M1) in circulation, or alternatively as the fraction of total GDP transactions each Rupee can facilitate. Wonderful... it brought back a forgotten memory. I used to sometimes scribble tiny initials on the rupee notes I paid the sabjiwala when I went veggie shopping for mom (long ago when I was a kid of 10 playing in the compounds of Golden-Silver Apartments in Baroda). My hope was someday I would see one of those notes again. I don't remember if I picked the habit from someone or when I grew out of it. If you ever see one with SKP scribbled over the Mahatma watermark, you know it was mine.
National Savings go into Investments (may also increase Current Account surplus in open economies). Increased savings induces capital investments, and thereby improves the National Productivity (TFP)... eventually affecting the GDP growth rate benfecially. Well, I remember dad repeating ad nauseam 'money saved is money earned' to us kids, overspending on everything from school recesses to my new house in Bangalore, which has been almost-ready-to-occupy for the last 6 months. These builders I tell you ...
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