IDEAS home Printed from https://ideas.repec.org/p/wpa/wuwpma/0504003.html
   My bibliography  Save this paper

Quantity Theory of Money

Author

Listed:
  • B.V. GOPINATH

    (No affiliation)

Abstract

Quantity Theory is a foolproof theory. This Theory is based on Law of Conservation of Wealth. This Theory tests positive with Law of Mass Action of reversible economic (chemical) reactions. Study of utility ( I call utility as all that a human being needs) helps us understand Quantity Theory better. Utility and water have similarities. Water is a form of matter and utility is a form of wealth. Water is universal solvent and so is utility. All other forms of wealth dissolve in utility. Water is in the form of H + OH. Similarly utility exists in the form of Goods and services which are otherwise called as WANTS by economists + money and money related forms of wealth that are called as MEANS by economists. According to Law of Law of Conservation, value of wants = value of means. Any economic entity, be it an individual, a family, a society, a business firm, a state or a nation tries to attain equilibrium between wants and means. Quantity Theory is relevant to all branches of Economics.

Suggested Citation

  • B.V. Gopinath, 2005. "Quantity Theory of Money," Macroeconomics 0504003, EconWPA.
  • Handle: RePEc:wpa:wuwpma:0504003
    Note: Type of Document - doc; pages: 6. Quantity Theory is all about economic reaction between Goods and services that are called WANTS and money and money related forms of wealth that are called MEANS. This law is relevant to all branches of economics.
    as

    Download full text from publisher

    File URL: http://econwpa.repec.org/eps/mac/papers/0504/0504003.pdf
    Download Restriction: no

    File URL: http://econwpa.repec.org/eps/mac/papers/0504/0504003.ps.gz
    Download Restriction: no

    File URL: http://econwpa.repec.org/eps/mac/papers/0504/0504003.doc.gz
    Download Restriction: no

    More about this item

    Keywords

    Law of Conservation of Wealth; Utility; Law of Mass Action of reversible chemical reactions; Economic reactions;

    JEL classification:

    • D1 - Microeconomics - - Household Behavior

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wpa:wuwpma:0504003. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (EconWPA). General contact details of provider: http://econwpa.repec.org .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.