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
Collins English Dictionary - Complete & Unabridged 2012 Digital Edition © William Collins Sons & Co. Ltd. 1979, 1986 © HarperCollins Publishers 1998, 2000, 2003, 2005, 2006, 2007, 2009, 2012
How to use quantity theory in a sentence
The quantity theory has, unfortunately, been made the basis of arguments for unsound currency schemes.
The quantity theory will be made more clear by the equation of exchange, which is now to be explained.
There is nothing whatever in the plan itself which could not be accepted by those who reject the quantity theory altogether.
It is true that many writers still oppose the quantity theory.
There is no such a priori simplicity as the quantity theory deals with.The Value of Money | Benjamin M. Anderson, Jr.