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.
- 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.
This is a preview of subscription content, access via your institution.
Tax calculation will be finalised at checkout
Purchases are for personal use onlyLearn about institutional subscriptions
Unable to display preview. Download preview PDF.
Angell, J.W. 1936. The Behavior of Money. New York: McGraw-Hill.
Bagehot, W. 1873. Lambard Street. London: Henry S. King.
Barnett, W.A., Offenbacher, E.K. and Spindt, P.A. 1984. The new Divisia monetary aggregates. Journal of Political Economy 92, 1049–85.
Baumol, W.J. 1952. The transactions demand for cash: an inventory theoretic approach. Quarterly Journal of Economics 66, 545–56.
Black, F. 1970. Banking and interest rates in a world without money: the effects of uncontrolled banking, Journal of Bank Research 1(3), 2–20.
Black, H. 1975. The relative importance of determinants of the money supply: the British case. Journal of Monetary Economics 1(2), 25–64.
Bordo, M.D. and Schwartz, A.J., eds. 1984. A Retrospective on the Classical Gold Standard, 1821–1931. Chicago: University of Chicago Press for the National Bureau of Economic Research.
Burger, A.E. 1971. The Money Supply Process. Belmont: Wadsworth.
Cagan, P. 1965. Determinants and Effects of Changes in the Stock of Money, 1875–1960. New York: Columbia University Press for the National Bureau of Economic Research.
Cagan, P. 1972. The Channels of Monetary Effects on Interest Rates. New York: National Bureau of Economic Research.
Cairnes, J.E. 1873. Essays on the gold question. In J.E. Cairnes, Essays in Political Economy, London: Macmillan.
Cipolla, CM. 1956. Money, Prices, and Civilization in the Mediterranean World, Fifth to Seventeenth Century. Princeton: Princeton University Press.
Commission on the Role of Gold in the Domestic and International Monetary Systems. 1982. Report to the Congress, March. Washington, DC: The Commission.
Duck, N.W. 1985. Money, output and prices: an empirical study using long-term cross country data. Working Paper, University of Bristol, September.
Fama, E.F. 1980. Banking in the theory of finance. Journal of Monetary Economics 6(1), 39–57.
Feavearyear, A.E. 1931. The Pound Sterling: a History of English Money. 2nd edn., Oxford: Clarendon Press, 1963.
Fischer, S., ed. 1980. Rational Expectations and Economic Policy. Chicago: University of Chicago Press for the National Bureau of Economic Research.
Fischer, I. 1896. Appreciation and Interest. New York: American Economic Association.
Fisher, I. 1911. The Purchasing Power of Money. 2nd revised edn, 1926; reprinted New York: Kelley, 1963.
Fisher, I. 1919. Money, prices, credit and banking. American Economic Review 9, 407–9.
Frenkel, J.A. 1976. Adjustment mechanisms and the monetary approach to the balance of payments. In Recent Issues in International Monetary Economics, ed. E. Claassen and P. Salin. Amsterdam: North-Holland.
Frenkel, J.A. and Johnson, H.G. 1976. The monetary approach to the balance of payments: essential concepts and historical origins. In The Monetary Approach to the Balance of Payments,ed. J.A. Frenkel and H.G. Johnson. Toronto: University of Toronto Press.
Friedman, M. 1956. The quantity theory of money — a restatement. In Studies in the Quantity Theory of Money, ed. M. Friedman. Chicago: University of Chicago Press.
Friedman, M. 1957. A Theory of the Consumption Function. Princeton: Princeton University Press for the National Bureau of Economic Research.
Friedman, M. 1959. The demand for money: some theoretical and empirical results. Journal of Political Economy 67, August, 327–51. Reprinted as Occasional Paper No. 68, New York: National Bureau of Economic Research, and in Friedman (1969).
Friedman, M. 1960. A Program for Monetary Stability. New York: Fordham University Press.
Friedman, M. 1961. The lag in effect of monetary policy. Journal of Political Economy 69, 447–66. Reprinted in Friedman (1969).
Friedman, M. 1968. The role of monetary policy. American Economic Review 58, 1–17. Reprinted in Friedman (1969).
Friedman, M. 1969. The Optimum Quantity of Money and Other Essays. Chicago: Aldine.
Friedman, M. 1977. Inflation and unemployment (Nobel lecture). Journal of Political Economy 85, 451–72.
Friedman, M. 1984. Monetary policy for the 1980s. In To Promote Prosperity: U.S. domestic policy in the mid-1980s, ed. J.H. Moore. Stanford: Hoover Institution Press.
Friedman, M. and Schwartz, A.J. 1963a. Money and business cycles. Review of Economics and Statistics 45(1), Supplement, February, 32–64. Reprinted in Friedman (1969).
Friedman, M. and Schwartz, A.J. 1963b. A Monetary History of the United States, 1867–1960. Princeton: Princeton University Press for the National Bureau of Economic Research.
Friedman, M. and Schwartz, A.J. 1970. Monetary Statistics of the United States. New York: Columbia University Press for the National Bureau of Economic Research.
Friedman, M. and Schwartz, A.J. 1982. Monetary Trends in the United States and the United Kingdom: Their Relation to Income, Prices, and Interest Rates, 1867–1975. Chicago: University of Chicago Press for the National Bureau of Economic Research.
Friedman, M. and Schwartz, A.J. 1986. Has government any role in money? Journal of Monetary Economics 17(1), 37–62.
Gordon, R.J. 1980. A consistent characterization of a near-century of price behavior. American Economic Review 70, 243–19.
Gordon, R.J. 1981. Output fluctuations and gradual price adjustment. Journal of Economic Literature 19, 493–530.
Gordon, R.J. 1982. Price inertia and policy ineffectiveness in the United States, 1890–1980. Journal of Political Economy 90, 1087–117.
Greenfield, R.L. and Yeager, L.B. 1983. A laissez-faire approach to monetary stability. Journal of Money, Credit, and Banking 15, 302–15.
Haberler, G. 1941. Prosperity and Depression. 3rd edn., Geneva: League of Nations.
Hall, R.E. 1982a. Explorations in the gold standard and related policies for stabilizing the dollar. In Inflation: Causes and Effects, ed. R.E. Hall. Chicago: University of Chicago Press.
Hall, R.E. 1982b. ‘Monetary trends in the United States and the United Kingdom’: a review from the perspective of new developments in monetary economics. Journal of Economic Literature 20, 1552–6.
Hamilton, E.J. 1934. American Treasure and the Price Revolution in Spain, 1501–1650. Harvard Economic Studies, vol. 43, New York: Octagon, 1965.
Hansen, A. 1957. The American Economy. New York: McGraw-Hill.
Hayek, RA. 1976. Denationalization of Money. 2nd extended edn., London: Institute of Economic Affairs, 1978.
Hume, D. 1752. Of interest; of money. In Essays, Moral, Political and Literary, vol. 1 of Essays and Treatises, a new edn, Edinburgh: Bell and Bradfute, Cadell and Davies, 1804.
Humphrey, T.M. 1984. Algebraic quantity equations before Fisher and Pigou. Economic Review, Federal Reserve Bank of Richmond 70(5), September-October, 13–22.
Ihori, T. 1985. On the welfare cost of permanent inflation. Journal of Money, Credit, and Banking 17(2), 220–31.
Jevons, W.S. 1863. A serious fall in the value of gold. In Investigations in Currency and Finance, 2nd edn. London: Macmillan, 1909.
Johnson, H.G. 1961. The General Theory after twenty-five years. American Economic Association, Papers and Proceedings 51, 1–17.
Judd, J.P. and Scadding, J.L. 1982. The search for a stable money demand function. Journal of Economic Literature 20, 993–1023.
Keynes, J.M. 1923. A Tract on Monetary Reform. Reprinted London: Macmillan for the Royal Economy Society, 1971.
Keynes, J.M. 1936. The General Theory of Employment, Interest and Money. Reprinted London: Macmillan for the Royal Economic Society, 1973.
Knoester, A. 1984. Pigou and buffer effects in monetary economics. Discussion Paper 8406 G/M, Institute for Economic Research, Erasmus University, Rotterdam.
Laidler, D. 1984. The ‘buffer stock’ notion in monetary economics. Economic Journal 94, Supplement, 17–34.
Laidler, D. 1985. The Demand for Money: theories, evidence, and problems. 3rd edn., New York: Harper & Row.
Lothian, J.R. 1985. Equilibrium relationships between money and other economic variables. American Economic Review 75, 828–35.
Lucas, R.E., Jr. 1976. Econometric policy evaluation: a critique. Journal of Monetary Economics supplementary series 1, 19–46.
Lucas, R.E., Jr. 1981. Tobin and monetarism: a review article. Journal of Economic Literature 19, 558–67.
Lucas, R.E., Jr. and Sargent, T.J., eds. 1981. Rational Expectations and Economic Practice. 2 vols, Minneapolis: University of Minnesota Press.
McCallum, B. 1985. Bank deregulation, accounting systems of exchange and the unit of account: a critical review. Carnegie-Rochester Conference Series on Public Policy 23, Autumn.
McKinnon, R. 1984. An International Standard for Monetary Stabilization. Cambridge, MA: MIT Press.
Meiselman, D., ed. 1970. Varieties of Monetary Experience. Chicago: University of Chicago Press.
Mill, J.S. 1844. Review of books by Thomas Tooke and R. Torrens. Westminster Review, June.
Miller, M.H. and Orr, D. 1966. A model of the demand for money by firms. Quarterly Journal of Economics 80, 413–35.
Miller, M.H. and Orr, D. 1968. The demand for money by firms: extensions of analytical results. Journal of Finance 23, 735–59.
Modigliani, F. 1977. The monetarist controversy, or should we forsake stabilization policies? American Economic Review 67, 1–19.
Mussa, M. 1977. The welfare cost of inflation and the role of money as a unit of account. Journal of Money, Credit, and Banking 9(2), 276–86.
Muth, J.F. 1961. Rational expectations and the theory of price movements. Econometrica 29, July, 315–35. Reprinted in Lucas and Sargent (1981).
Newcomb, S. 1885. Principles of Political Economy. New York: Harper & Brothers.
Patinkin, D. 1948. Price flexibility and full employment. American Economic Review 38, September, 543–64. Revised and reprinted in F.A. Lutz and L.W. Mints (American Economic Association), Readings in Monetary Theory, Homewood, IL: Irwin, 1951.
Phelps, E.S. 1967. Phillips curves, expectations of inflation, and optimal unemployment over time. Economica 34(135), 254–81.
Pigou, A.C. 1917. The value of money. Quarterly Journal of Economics 32, November, 38–65. Reprinted in RA. Lutz and L.W. Mints (American Economic Association), Readings in Monetary Theory, Homewood, IL: Irwin, 1951.
Pigou, A.C. 1947. Economic progress in a stable environment. Economica 14(55), 180–88.
Sargent, T.J. 1982. The ends of four big inflations. In Inflation: Causes and Effects, ed. R.E. Hall. Chicago: University of Chicago Press.
Snyder, C. 1934. On the statistical relation of trade, credit, and prices. Revue de l’Institut International de Statistique2, 278–91.
Spindt, P.A. 1985. Money is what money does: monetary aggregation and the equation of exchange. Journal of Political Economy 93, 1975–2204.
Tobin, J. 1947. Money wage rates and employment. In The New Economics, ed. S. Harris. New York: Knopf.
Tobin, J. 1956. The interest-elasticity of transactions demand for cash. Review of Economics and Statistics 38, 241–7.
Tobin, J. 1958. Liquidity preference as behavior toward risk. Review of Economic Studies 25, 65–86.
Tobin, J. 1961. Money, capital and other stores of value. American Economic Review, Papers and Proceedings 51, 26–37.
Tobin, J. 1974. Friedman’s theoretical framework. In Milton Friedman’s Monetary Framework: a Debate with His Critics, ed. R.J. Gordon. Chicago: University of Chicago Press.
White, L.H. 1984a. Free Banking in Britain: Theory, Experience and Debate, 1800–1845. New York: Cambridge University Press.
White, L.H. 1984b. Competitive payments systems and the unit of account. American Economic Review 74, 699–712.
Editors and Affiliations
© 2010 Palgrave Macmillan, a division of Macmillan Publishers Limited
About this chapter
Cite this chapter
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
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-0-230-23888-6
Online ISBN: 978-0-230-28085-4