quantity theory

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Related to Quantity theory of money: Velocity of money

quantity theory

n
(Economics) economics a theory stating that the general price level varies directly with the quantity of money in circulation and the velocity with which it is circulated, and inversely with the volume of production expressed by the total number of money transactions
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References in periodicals archive ?
In this theory, the logic of the quantity theory of money is preserved but "not interpreted as some mechanical relation" (Yeager 2012).
--(1956) "The Quantity Theory of Money: A Restatement." In Studies in the Quantity Theory of Money, 3-21.
However, it has also been proved that quantity theory of money is not applicable in Pakistan along with unstable income velocity of money, which casts doubt on the use of monetary aggregates targeting (Omer and Saqib, 2009).
Friedman re-instated the Quantity Theory of Money, and argued that there was a natural rate of unemployment, which could not be affected by economic policy, in direct opposition to Keynesian insights.
Amin SB (2011) Quantity theory of money and its applicability: the case of Bangladesh.
'In the long run we are all dead', a phrase originally used by Keynes in his 1923 A tract on monetary reform, was part of his critique of the quantity theory of money. The next sentence read: 'Economists set themselves too easy, too useless a task if in tempestuous seasons they can only tell us that when the storm is long past the ocean is flat again'.
Having said that, the quantity theory of Money (MV=PQ) still seems to support a slight economic uptick.
According to the quantity theory of money, inflation derives from the excessive supply of money by governments, for example, in order to cover budget deficits.
He describes the quantity theory of money and says it is fundamental and not subject to question.
In modern minds the quantity theory of money is a simple dictum whereby an exogenous increase in the money supply will cause a proportionate rise in the price level.
This article examines the basis for the original concerns about inflation in terms of the classic quantity theory of money, which holds that inflation occurs when the money supply expands more rapidly than warranted by increases in real production.
This argument is closely related to the quantity theory of money. The quantity theory of money holds that money supply is proportional to the price level and is expressed by the following formula: