ModelsMacroConceptsPolicyModels
Macroeconomic model reference

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.

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Quantity Theory of Money versus nearby models

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Concepts, data, and nearby models

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Concepts

AD-ASBusiness cyclesEconomic growthInterest rates

Indicators

Real GDPgdp.realHeadline CPIprices.cpi.headlineUnemployment ratelabor.unemployment.ratePolicy ratemoney.policy_rate

Policy

Monetary policyFiscal policy

Nearby models

IS-LMAD-ASTaylor rule