Howden, David (2013): The Quantity Theory of Money. Published in: Journal of Prices & Markets , Vol. 1, No. 1 (2013): pp. 17-30.
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Abstract
For an innocuous statement based on a trivial tautology, the quantity theory of money is sorely battered. This paper has three goals. First, it exposes the various flavours of the quantity theory as special cases of a simple application of the law of diminishing marginal utility. Second, it provides an overview of some typically controversial aspects of the quantity theory. Finally, it reformulates the quantity theory in light of these now resolved controversies. Although I use the term “quantity theory of money”, by the end of this article I reformulate the concept as an “exchange theory of velocity”.
Item Type: | MPRA Paper |
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Original Title: | The Quantity Theory of Money |
Language: | English |
Keywords: | quantity theory of money, velocity, equation of exchange, inflation |
Subjects: | E - Macroeconomics and Monetary Economics > E3 - Prices, Business Fluctuations, and Cycles E - Macroeconomics and Monetary Economics > E3 - Prices, Business Fluctuations, and Cycles > E30 - General |
Item ID: | 79601 |
Depositing User: | Dr. David Howden |
Date Deposited: | 09 Jun 2017 04:56 |
Last Modified: | 28 Sep 2019 05:42 |
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URI: | https://mpra.ub.uni-muenchen.de/id/eprint/79601 |