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.

Theory-based models · Derivation

Quantity Theory of Money derivation: assumptions and equations

Trace the Quantity Theory of Money derivation through assumptions, notation, equations, and failure cases.

Macro by Mark

Model Derivation requires Starter

Model Derivation unlocks with Starter and up

Upgrade to Starter View pricing Questions?

What you keep on Free

Create and edit one custom board
Use up to 3 widgets on the Free board
Browse seeded indicators, the week calendar, and delayed news

Concepts, data, and nearby models

Open the concept, data series, policy setting, or neighboring model that anchors this page.

Quantity Theory of Money derivation: assumptions and equations

Model Derivation requires Starter

Concepts, data, and nearby models

Concepts

Indicators

Policy

Nearby models