The Quantity Theory of Money MV = PY Lectures in Macroeconomics- Charles W. Upton
The Quantity Theory of Money The Scenario The Money supply is doubled on Christmas Eve. The auctioneer has the job of putting the money market and the goods market back in equilibrium The Quantity Theory of Money
The Quantity Theory of Money The Scenario The Money supply is doubled on Christmas Eve. The auctioneer has the job of putting the money market and the goods market back in equilibrium Money Supply = Money Demand Y = C + I + G + (X-M) The Quantity Theory of Money
The Quantity Theory of Money The Y and M Curves M P Po Y r ro The Quantity Theory of Money
The Quantity Theory of Money The Y and M Curves M Y Curve: The combinations of P and r that keep YS = YD. P Po Y Y = C + I + G + (X-M) r ro The Quantity Theory of Money
The Quantity Theory of Money The Y and M Curves M P Y Curve: The combinations of P and r that keep YS = YD. Po Y r ro The Quantity Theory of Money
The Quantity Theory of Money The Y and M Curves M P M Curve: The combinations of P and r that keep Money Demand = Money Supply Po Y r ro The Quantity Theory of Money
The Quantity Theory of Money The Solution M’ M P 2Po Y’ Po Y r ro The Quantity Theory of Money
The Quantity Theory of Money The Solution M’ M P Doubling price level keeps money supply constant and wealth constant. Hence no real effect. 2Po Y’ Po Y r ro The Quantity Theory of Money
The Quantity Theory of Money The Solution M’ M P Doubling price level keeps money supply constant and wealth constant. Hence no real effect. 2Po Subsequent lectures will take us through the mechanics, but first a discussion of the Quantity Theory and the Quantity Equation Y’ Po Y r ro The Quantity Theory of Money
The Quantity Theory of Money The Quantity Equation The Quantity Theory of Money
The Quantity Theory of Money Velocity Speed with which money turns over. The Quantity Theory of Money
The Quantity Theory of Money Velocity Speed with which money turns over. Irving Fisher The Quantity Theory of Money
The Quantity Theory of Money A Little Manipulation The Quantity Theory of Money
The Quantity Theory of Money A Little Manipulation The Quantity Theory of Money
The Quantity Theory of Money A Little Manipulation The Quantity Theory of Money
The Quantity Theory of Money The Quantity Equation The Quantity Theory of Money
From the Quantity Equation to the Quantity Theory The Quantity Equation is a tautology The Quantity Theory of Money
From the Quantity Equation to the Quantity Theory The Quantity Equation is a tautology But what about V? Here, we get to the Quantity Theory The Quantity Theory of Money
From the Quantity Equation to the Quantity Theory The Quantity Equation is a tautology But what about V? Here, we get to the Quantity Theory The Quantity Theory of Money
From the Quantity Equation to the Quantity Theory The Quantity Theory of Money
The Quantity Theory of Money Are We Done Yet? The Quantity Theory of Money
The Quantity Theory of Money Are We Done Yet? Evidence Qualifications Manipulation Application The Quantity Theory of Money
The Quantity Theory of Money End ©2003 Charles W. Upton. All rights reserved The Quantity Theory of Money