quantity theory

noun

: a theory in economics: changes in the price level tend to vary directly with the amount of money in circulation and the rate of its circulation

Examples of quantity theory in a Sentence

Recent Examples on the Web

Leaving aside such omissions, what does the quantity theory of money have to say about inflation? —John Greenwood, National Review, 15 Jan. 2024

The quantity theory of money, coupled with the relevant U.S. metrics, says that an M2 growth rate of around 6 percent per year should do the trick. —John Greenwood, National Review, 15 Jan. 2024

To put those numbers into context, based on the quantity theory of money, the rate of growth of the money supply that is consistent with the Federal Reserve’s hitting its 2 percent inflation target is 5–6 percent per year. —Steve H. Hanke, National Review, 22 Mar. 2023

In context, Friedman wasn’t saying that the quantity theory of money had been unsuccessful and that there is no relationship between the money supply, broadly measured, and inflation. —WSJ, 22 Jan. 2023

Occasionally, anti-monetarists such as Mr. Katz have jumped all over this quote to argue that, late in life, Friedman abandoned his life’s work, namely, the quantity theory of money. —WSJ, 22 Jan. 2023

This mechanism, which is based on the quantity theory of money, was evident after the monetary injections coincident with the onset of the Covid-19 pandemic. —Dick Lepre, National Review, 14 Dec. 2022

Today, monetarism’s quantity theory of money is out of vogue, to put it mildly. —Shawn Tully, Fortune, 8 Oct. 2022

On the other hand, the Keynesians said that quantity theory of money didn’t work because the Fed’s balance sheet expanded enormously, but the U.S. didn’t experience much inflation. —Shawn Tully, Fortune, 13 Apr. 2022

Word History

First Known Use

1888, in the meaning defined above

Rhymes for quantity theory

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