QE3 and Quantity theory of money: Difference between pages

From ACT Wiki
(Difference between pages)
Jump to navigationJump to search
imported>Doug Williamson
(Add link.)
 
imported>Administrator
(CSV import)
 
Line 1: Line 1:
A third round, or phase, of quantitative easing.
''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 ==
== See also ==
* [[QE1]]
* [[Fisher's equation]]
* [[QE2]]
* [[QE4]]
 
* [[Quantitative easing ]]

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