Fisher's equation: Difference between revisions
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== See also == | == See also == | ||
* [[Quantity theory of money]] | * [[Quantity theory of money]] | ||
[[Category:The_business_context]] | |||
Latest revision as of 14:44, 1 July 2022
Economics.
A formal expression of the quantity theory of money defining the relationship between the quantity of money in the economy, its velocity of circulation, the number of transactions over a given period and the general level of prices.
The equation is conventionally expressed as:
P = MV / T
Where:
- P = the general level of prices,
- M = the quantity of money in the economy,
- V = its velocity of circulation,
- T = the volume of transactions in a given period.
