Definition: Quantity theory of money states that money supply and price level in an economy are in direct proportion to one another. When there is a change in the supply of money, there is a ...

This is not to say that all the exponents of the quantity theory had realized that the value of money is not determined solely by its nonmonetary, industrial employment, but also or even solely by its ...

Unfortunately for Prussia, the king didn't heed his advice. "The causal chain began with debasement, which raised the quantity of the money supply, which in turn raised prices. The supply of money is ...

The foundation of monetarism is the Quantity Theory of Money. The theory is an accounting identity—that is, it must be true. It says that the money supply multiplied by velocity (the rate at which ...

Special cases of the fiscal and monetary policies considered produce the quantity theory of money and the fiscal theory of the price level.

Monetarism is the theory that the proper control of a country's monetary supply is the primary determinant of that country's economic health and stability. Monetarism is based on the quantity ...

The other similarly complete theory of the value of money is that version of the quantity theory associated with the name of Davanzati.11 According to this theory, all the things that are able to ...

a British economist who warned about the damaging effects of harsh reparation payments from Germany for World War I and was a proponent of the quantity theory of money known as monetarism ...

One contribution of this paper is to relate these conditions to measurable variables such as the interest rate or the consumption elasticity of money demand. We find that it tends to be optimal to tax ...