Quantity theory of money

The theory which we assume that increase and decrease of the monetary quantity produces effect to just price, to productive activity and increase and decrease and the like of employment does not produce effect.

Fisher's exchange equation

As a monetary quantity and a tool in order to analyze the correlation of price from actual statistic Fisher. As for this the monetary quantity and relationship of price, those which are described by the fact that the concept such as "velocity of circulation" of the money or "transaction level" is introduced. :

M*V = P*T

M The circulation money in a certain point in time (the currency) the gross

V "Velocity of circulation" of the money (gross of money which into specific period is delivered between people)

P Price level

T "Transaction level" (total of frequency of the transaction which during specific period is done between the people)

Related item

money
new classical economics
monetarist