Two Illustrations of the Quantity Theory of Money

摘要: of two central implications the quantity theory money: that a given change in rate money induces (i) an equal price inflation; and (ii) nominal rates interest. The illustrations were obtained by comparing moving averages three variables question, using quarterly U.S. time-series for period 1953-77. Readers may find results interest as additional confirmation theory, example one way which quantity-theoretic relationships can be uncovered via atheoretical methods from are subject to variety other forces, or measure extent inflation experience postwar understood terms purely classical, monetary forces. theoretical background study is reviewed, very briefly it familiar material, next section. data processing described rationalized Section II.