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The hypothesis that changes in prices correspond to changes in the monetary supply.
- ‘Traditionally, classical economists supported the quantity theory of money as explaining price levels.’
- ‘These essays show, however, that he clearly subscribes to the quantity theory of monetary history, although he does not address any of the criticisms which have been levelled against it.’
- ‘Even among those who had previously espoused the quantity theory, almost no economist linked the economic recovery to growth of the money stock.’
- ‘If these two variables were assumed to remain constant, then the simple quantity theory would predict the price level to change in proportion to a change in the money supply.’
- ‘The correlation between price level and money supply is determined by the quantity theory of money.’
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