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quantity theory of money
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quantity theory of money

Economic theory claiming that an increase in the amount of money in circulation causes a proportionate increase in prices.

The theory dates from the 17th century and was elaborated by the US economist Irving Fisher (1867–1947). Supported and developed by Milton Friedman, it forms the theoretical basis of monetarism.
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Specifically, they discuss positive economics, flexible exchange rates, the quantity theory of money, the business cycle, monetary policy, econometric policy evaluation, asset prices, the mechanics of economic development, the labor-market equilibrium, and other topics.
Milton Friedman, Robert E. Lucas, Jr. and Edmund S. Phelps by Reference & Research Book News
As predicted by the textbook quantity theory of money, this practice has devalued the Zimbabwean dollar and caused hyperinflation.
Could the U.S. dollar go the way of Zimbabwe? by John Lee, Mau Capital Management / Stockhouse
To detect the quantity theory of money, Sargent and Surico look at scatter plots of filtered time series of inflation and money growth rates and interest rates and money growth rates.
Monetary Economics by NBER Reporter
 
 
 
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