quantity theory


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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
References in periodicals archive ?
Keynes' argument for rejecting the rule-based implications of the quantity theory of money is developed in the first three chapters of the Tract.
Another approach, based on the quantity theory of money, uses monetary aggregates to predict inflation.
Over the years, the quantity theory of money has been extended and refined.
In teaching the quantity theory of money, many students have difficulty with understanding the theory itself and the terms in that equation.
47) seems reasonably above unity which is in stark contrast with the quantity theory of money and other studies for developed countries, e.
In the writings by John Law, we can see his rudimentary version of what we know as the quantity theory of money.
The Quantity Theory says that inflation will reflect the excess of money growth over real GDP growth when velocity is reasonably stable.
The challenge this paper will present, especially to academic economists, is in its mathematical demonstration of how Say's Law of Markets can be reconciled both with the classical quantity theory of money and various measures of net national product (NNP) to permit accelerated rates of growth without inflation, as predicted by binary economic theory.
This view is directly linked to the quantity theory of money.
These essays show, however, that he clearly subscribes to the quantity theory of monetary history, although he does not address any of the criticisms which have been levelled against it.
Many subjects pursued by quantitative historians only a generation ago, such as price series and estimates of harvest production, are now left in the dark; the quantity theory of money, once dominant in Iberian and Mediterranean studies, is nowhere in sight.
In a story in The Quantity Theory of Insanity, he writes, "Jane Bowen extended her hand with an overarm gesture that told me she couldn't have cared less about me, or my antecedents.