quantity theory

British  

noun

1. economics a theory stating that the general price level varies directly with the quantity of money in circulation and the velocity with which it is circulated, and inversely with the volume of production expressed by the total number of money transactions

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Example Sentences

But just as Keynes struggled to escape from the grip of the quantity theory of money we have struggled to escape from the grip of conventional wisdom about debt management and monetary and fiscal policy.

From New York Times • Mar. 4, 2015

The original quantity theory of money, related money to anything money can buy, and prices are on ....anything money can buy.

From Economist • Dec. 3, 2012

In the original quantity theory P is price of everything.

From Economist • Dec. 3, 2012

Aug 2nd 2012 13:14 GMT Also, Mr Duncan’s explanation on the quantity theory of money baffles me a bit.

From Economist • Aug. 2, 2012

This curve expresses, in terms of value, the idea of proportionality which is an essential part of the quantity theory.

From The Value of Money by Anderson, Benjamin M.