The quantity theory of money. A comment

Authors

  • R.S. MASERA

DOI:

https://doi.org/10.13133/2037-3643/12880

Keywords:

Quantity theory, nominal stock, money, demand, supply, monetary policy

Abstract

In this brief note, the author criticises A.K. Kelly’s A Critical Note on the Quantity Theory of Money. The author contends that while there are certainly sound arguments supporting the view that the nominal stock of money is partly dependent on the endogenous behaviour of the economic system, this fact does not preclude the existence of two separate supply and demand functions, although it does raise the question of whether the single -equation approach to the estimation of the demand-for-money function is in fact warranted. Moreover, Kelly’s position that it is impossible for the suppliers of money to create “excess” monetary balances does not withstand scrutiny.

 

JEL: B22, E41, E51, E52

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How to Cite

MASERA, R. (2014). The quantity theory of money. A comment. PSL Quarterly Review, 24(99). https://doi.org/10.13133/2037-3643/12880

Issue

Vol. 24 No. 99 (1971)

Section

Editorial

License

 
 
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