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  2. Equation of exchange - Wikipedia

    en.wikipedia.org/wiki/Equation_of_exchange

    That is to say that, if and were constant or growing at equal fixed rates, then the inflation rate would exactly equal the growth rate of the money supply. An opponent of the quantity theory would not be bound to reject the equation of exchange, but could instead postulate offsetting responses (direct or indirect) of Q {\displaystyle Q} or of V ...

  3. Money supply - Wikipedia

    en.wikipedia.org/wiki/Money_supply

    China M2 money supply vs USA M2 money supply Comparative chart on money supply growth against inflation rates M2 as a percent of GDP. In macroeconomics, money supply (or money stock) refers to the total volume of money held by the public at a particular point in time.

  4. Quantity theory of money - Wikipedia

    en.wikipedia.org/wiki/Quantity_theory_of_money

    The supply of money is also exogenous and can be controlled by the monetary authority (the central bank). Under these three assumptions, there is a causal effect of M on P, and the central bank, by controlling money supply, will be able to directly control the price level of the economy. Specifically, a constant growth rate in the money stock ...

  5. Friedman's k-percent rule - Wikipedia

    en.wikipedia.org/wiki/Friedman's_k-percent_rule

    Friedman's Money Supply Rule vs. Optimal Interest Rate Policy; Model Uncertainty and Delegation: A Case for Friedman's k-percent Money Growth Rule; A K-Percent Rule for Monetary Policy in West Germany; Rules, discretion and reputation in a model of monetary policy, Robert J. Barro, David B. Gordon; Discretion versus policy rules in practice ...

  6. Demand for money - Wikipedia

    en.wikipedia.org/wiki/Demand_for_money

    In this case the above equation can be solved for the inflation rate: = + Here, given the long-run output growth rate, the only determinant of the inflation rate is the growth rate of the money supply. In this case inflation in the long run is a purely monetary phenomenon; a monetary policy which targets the money supply can stabilize the ...

  7. Money multiplier - Wikipedia

    en.wikipedia.org/wiki/Money_multiplier

    The money multiplier is normally presented in the context of some simple accounting identities: [1] [2] Usually, the money supply (M) is defined as consisting of two components: (physical) currency (C) and deposit accounts (D) held by the general public.

  8. Real and nominal value - Wikipedia

    en.wikipedia.org/wiki/Real_and_nominal_value

    The real growth rate is the change in a nominal quantity in real terms since the previous date . It measures by how much the buying power of the quantity has changed over a single period. It measures by how much the buying power of the quantity has changed over a single period.

  9. Monetary policy - Wikipedia

    en.wikipedia.org/wiki/Monetary_policy

    The quantity theory is a long run model, which links price levels to money supply and demand. Using this equation, we can rearrange to see the following: π = μ − g, where π is the inflation rate, μ is the money supply growth rate and g is the real output growth rate.