Quantitative techniques and Quantity theory of money: Difference between pages

Revision as of 11:25, 18 March 2015

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,

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.

@@ Line 1: / Line 1: @@
-Analysis with numbers and calculations.
+''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,
+: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 ==
-* [[Financial analysis]]
+* [[Fisher's equation]]
-* [[Qualitative techniques]]
-* [[Quantitative easing]]
-* [[Quantitative fallacy]]
-* [[Sensitivity analysis]]
-[[Category:The_business_context]]
-[[Category:Identify_and_assess_risks]]
-[[Category:Manage_risks]]
-[[Category:Risk_frameworks]]
-[[Category:Risk_reporting]]