“All little girls should be told they are pretty, even if they aren't.” (C) Marilyn Monroe
Quantity Theory Fisher’s view that velocity is fairly constant in the short run transforms the equation of exchange into the quantity theory of money, which states that nominal income is determined solely by movements in the quantity of money: When the quantity of money M doubles, M x V doubles and so must P x […]
One of the oldest, widely accepted functions of government is control over the supply of money. The dramatic effects of changes in the quantity of money on the level of prices and the volume of economic activity were recognized and thoroughly analyzed in the 18th century, and monetary economics has ever since constituted one of […]