quantity theory

noun

: a theory in economics: changes in the price level tend to vary directly with the amount of money in circulation and the rate of its circulation

Example Sentences

Recent Examples on the Web In context, Friedman wasn’t saying that the quantity theory of money had been unsuccessful and that there is no relationship between the money supply, broadly measured, and inflation. WSJ, 22 Jan. 2023 Occasionally, anti-monetarists such as Mr. Katz have jumped all over this quote to argue that, late in life, Friedman abandoned his life’s work, namely, the quantity theory of money. WSJ, 22 Jan. 2023 This mechanism, which is based on the quantity theory of money, was evident after the monetary injections coincident with the onset of the Covid-19 pandemic. Dick Lepre, National Review, 14 Dec. 2022 Today, monetarism’s quantity theory of money is out of vogue, to put it mildly. Shawn Tully, Fortune, 8 Oct. 2022 On the other hand, the Keynesians said that quantity theory of money didn’t work because the Fed’s balance sheet expanded enormously, but the U.S. didn’t experience much inflation. Shawn Tully, Fortune, 13 Apr. 2022 On the other hand, the Keynesians said that quantity theory of money didn’t work because the Fed’s balance sheet expanded enormously, but the U.S. didn’t experience much inflation. Shawn Tully, Fortune, 13 Apr. 2022 A year ago, a prominent economist used the orthodox quantity theory of money to predict what the Fed and almost all of his peers missed: That an inflationary explosion was close at hand. Shawn Tully, Fortune, 21 Apr. 2022 On the other hand, the Keynesians said that quantity theory of money didn’t work because the Fed’s balance sheet expanded enormously, but the U.S. didn’t experience much inflation. Shawn Tully, Fortune, 13 Apr. 2022 See More

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'quantity theory.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

Word History

First Known Use

1888, in the meaning defined above

Time Traveler
The first known use of quantity theory was in 1888

Dictionary Entries Near quantity theory

Cite this Entry

“Quantity theory.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/quantity%20theory. Accessed 8 Feb. 2023.

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