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Macro by Mark

Global Economic Data, Empirical Models, and Macro Theory
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Public data from government agencies and multilateral statistical releases, anchored in official sources

© 2026 Mark Jayson Nation

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Theory-Based Models

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Quantity Theory of Money
Model

The equation of exchange MV = PY links the money supply and its velocity to the nominal value of output. Under classical assumptions, changes in M translate proportionally into changes in the price level P.

How does the money supply determine the price level when output and velocity are stable?

Composition

MMM
Money supply

The total stock of money in circulation.

VVV
Velocity

The average number of times each unit of money is ...

PPP
Price level

The general price level, derived as P = MV/Y.

YYY
Real output

Real GDP, assumed fixed at its long-run level.

GraphProofCompare

Short Run Equilibrium

Price level

2.00

Nominal GDP

500.0

Money supply

100.0