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The quantity theory of money dominated macroeconomic theory until the 1930s.
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He also formulated a version of the quantity theory of money.
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If the money is sound, as it was when the quantity theory of money was devised, one could assume that an increase in its quantity would tend to raise prices.
www.marketoracle.co.uk
By its proponents, the fiscal theory is seen as complementary to the monetary quantity theory.
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The debate between currency, or quantity theory, and the banking schools during the 19th century prefigures current questions about the credibility of money in the present.
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He advocated the quantity theory of money, that general prices are determined by money.
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However, according to the quantity theory of money, because it reduces the supply of money it increases by the same amount the collective wealth of everyone else who holds money.
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Within this context, quantity theory applies to the level of fractional reserve accounting allowed against specie, generally gold, held by a bank.
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While mainstream economists agree that the quantity theory holds true in the long run, there is still disagreement about its applicability in the short run.
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Modern quantity theory also disagrees with the strict quantity theory in not believing that the supply curve is vertical in the short run.
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