Psychology Dictionary of ArgumentsHome
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| Quantity theory: The quantity theory of money (QTM) is a macroeconomic theory that states that the general price level of goods and services is directly proportional to the amount of money in circulation, or money supply. See also Monetarism, Price, Markets._____________Annotation: The above characterizations of concepts are neither definitions nor exhausting presentations of problems related to them. Instead, they are intended to give a short introduction to the contributions below. – Lexicon of Arguments. | |||
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Irving Fisher on Quantity Theory - Dictionary of Arguments
Mause I 221 Quantity theory/quantity equation/traffic equation/Fisher: (also exchange equation or transaction equation): M x V T = T real x P T = T nom M: Money supply - V: Speed of circulation - P: Price level - T: Transactions This relation links the monetary side of a market economy with its real sphere. Each transaction on the goods and factor markets (right side of the equation) is linked to a cash flow. T actually characterizes the real transaction volume (volume component) and PT the associated price level, so that the product of both variables yields the nominal transaction volume T nom. The nominal money supply M required for the payment flows is smaller than T nom, since the money supply within a certain period of time can be used more than once for transaction purposes. Terminology: Circulation speed: records this multiple use. Total demand: The product of money supply M and velocity VT is also referred to as total monetary demand. Gross Domestic Product: is used when there is no data on transactions between companies or consumption by private households. Causality: the relations based on Fisher's equation make no statements about causal connections._____________Explanation of symbols: Roman numerals indicate the source, arabic numerals indicate the page number. The corresponding books are indicated on the right hand side. ((s)…): Comment by the sender of the contribution. Translations: Dictionary of Arguments The note [Concept/Author], [Author1]Vs[Author2] or [Author]Vs[term] resp. "problem:"/"solution:", "old:"/"new:" and "thesis:" is an addition from the Dictionary of Arguments. If a German edition is specified, the page numbers refer to this edition. |
Fisher, Irving Mause I Karsten Mause Christian Müller Klaus Schubert, Politik und Wirtschaft: Ein integratives Kompendium Wiesbaden 2018 |
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