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The Quantity Theory of Money: An Assessment of its Real Linchpin Prediction

Author

Listed:
  • Claude Hillinger
  • Bernd Süßmuth

Abstract

This study approaches the Quantity Theory of Money at a conceptual level, asking how it can be most reasonably interpreted and quantitatively assessed. The resulting approach is straightforward. Unlike studies relying on other methods we find evidence of its linchpin prediction that is not limited to periods of high inflation.

Suggested Citation

  • Claude Hillinger & Bernd Süßmuth, 2010. "The Quantity Theory of Money: An Assessment of its Real Linchpin Prediction," CESifo Working Paper Series 2995, CESifo.
    • Handle: RePEc:ces:ceswps:_2995
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    File URL: https://www.ifo.de/DocDL/cesifo1_wp2995.pdf
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    References listed on IDEAS

    as
    1. Stanley Fischer & Ratna Sahay & Carlos A. Végh, 2002. "Modern Hyper- and High Inflations," Journal of Economic Literature, American Economic Association, vol. 40(3), pages 837-880, September.
    2. Harold J. Brumm, 2005. "Money Growth, Output Growth, and Inflation: A Reexamination of the Modern Quantity Theory's Linchpin Prediction," Southern Economic Journal, Southern Economic Association, vol. 71(3), pages 661-667, January.
    3. Milton Friedman, 1961. "The Lag in Effect of Monetary Policy," Journal of Political Economy, University of Chicago Press, vol. 69(5), pages 447-447.
    4. Harold J. Brumm, 2005. "Money Growth, Output Growth, and Inflation: A Reexamination of the Modern Quantity Theory's Linchpin Prediction," Southern Economic Journal, John Wiley & Sons, vol. 71(3), pages 661-667, January.
    5. Mr. Stanley Fischer & Ms. Ratna Sahay & Mr. Carlos A. Végh Gramont, 2002. "Modern Hyper- and High Inflations," IMF Working Papers 2002/197, International Monetary Fund.
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    Cited by:

    1. Jan Kodera & Quang Van Tran, 2016. "Odhad parametrů rozšířeného Kaldorova modelu a analýza stability stacionárního řešení [An Inflation Analysis Using an Endogenous Business Cycle Model]," Politická ekonomie, Prague University of Economics and Business, vol. 2016(7), pages 769-788.

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    More about this item

    Keywords

    quantity theory of money;

    JEL classification:

    • B22 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Macroeconomics
    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • E41 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Demand for Money
    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy

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