Quantity theory of money

From ACT Wiki
Revision as of 15:07, 18 March 2015 by Doug Williamson (Talk | contribs) (Remove detail which also appears in linked page Fisher's equation, but no change to 'Moneterists believe...')

(diff) ← Older revision | Latest revision (diff) | Newer revision → (diff)
Jump to: navigation, search


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

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

See also