Public Debt CNAV and Quantity theory of money: Difference between pages

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''Money market funds''.
''Economics''. 
A theory formalised by Irving Fisher, which links the level of prices with the amount of money in circulation.  


A constant net asset value (CNAV) per share money market fund, invested in public debt. 
It is defined as: P = MV/T, where P = price level, M = amount of money in circulation, V = velocity of circulation and T = volume of transactions.  
 
 
<span style="color:#4B0082">'''''Money market fund (MMF) reforms'''''</span>
 
:"Full implementation of MMF reforms won't take place until February 2019, but treasurers need to start preparing for the replacement of [prime] constant net asset value (CNAV) funds with two new categories:
 
: - the Public Debt CNAV fund, and
 
: - the low-volatility NAV (LNAV) fund.
 
 
:According to research from rating agency Moody's, LVNAV MMFs are likely to attract most of the funds currently invested in prime CNAV MMFs."
 
:''The Treasurer magazine, June 2018, p21 - Sarah Rundell, freelance journalist specialising in treasury and investment issues.''


Monetarists believe that it is the amount of money in circulation which has the biggest effect on price levels and inflation rates.


== See also ==
== See also ==
* [[Amortised cost]]
* [[Fisher's equation]]
* [[Constant net asset value]]
* [[Low-volatility NAV]]
* [[Money market fund]]
* [[Money Market Funds Regulation]]
* [[Money market fund reform: a light at the end of the tunnel?]]
* [[Net asset value]]
* [[Prime]]
* [[Variable net asset value]]
* [[Volatility]]


[[Category:Cash_management]]
[[Category:Liquidity_management]]

Revision as of 14:20, 23 October 2012

Economics. A theory formalised by Irving Fisher, which links the level of prices with the amount of money in circulation.

It is defined as: P = MV/T, where P = price level, M = amount of money in circulation, V = velocity of circulation and T = volume of transactions.

Monetarists believe that it is the amount of money in circulation which has the biggest effect on price levels and inflation rates.

See also


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