Definition of quantity theory in English:

Share this entry

quantity theory

(also the quantity theory of money)


The hypothesis that changes in prices correspond to changes in the monetary supply.
Example sentences
  • If these two variables were assumed to remain constant, then the simple quantity theory would predict the price level to change in proportion to a change in the money supply.
  • The correlation between price level and money supply is determined by the quantity theory of money.
  • Traditionally, classical economists supported the quantity theory of money as explaining price levels.

For editors and proofreaders

Syllabification: quan·ti·ty the·o·ry

Share this entry

What do you find interesting about this word or phrase?

Comments that don't adhere to our Community Guidelines may be moderated or removed.