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Monetary Economics pp 299–338Cite as

Palgrave Macmillan

Quantity Theory of Money

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Abstract

Lowness of interest is generally ascribed to plenty of money. But … augmentation [in the quantity of money] has no other effect than to heighten the price of labour and commodities … In the progress toward these changes, the augmentation may have some influence, by exciting industry, but after the prices are settled … it has no manner of influence.

Keywords

  • Interest Rate
  • Monetary Policy
  • Rational Expectation
  • Nominal Interest Rate
  • Monetary Authority

These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Authors
  1. Milton Friedman
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Editor information

Editors and Affiliations

  1. University of Wisconsin-Madison, USA

    Steven N. Durlauf

  2. Cornell University, USA

    Lawrence E. Blume

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Friedman, M. (2010). Quantity Theory of Money. In: Durlauf, S.N., Blume, L.E. (eds) Monetary Economics. The New Palgrave Economics Collection. Palgrave Macmillan, London. https://doi.org/10.1057/9780230280854_35

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