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
Examples of quantity theory in a Sentence
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By ignoring the quantity theory of money and employing neo-Keynesian macroeconomic models, central bankers are often wrong-footed.
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Nino Paoli, Fortune, 21 Aug. 2025
The quantity theory of money, coupled with the relevant U.S. metrics, says that an M2 growth rate of around 6 percent per year should do the trick.
—John Greenwood, National Review, 15 Jan. 2024
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
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Nino Paoli, Fortune, 21 Aug. 2025
The quantity theory of money, coupled with the relevant U.S. metrics, says that an M2 growth rate of around 6 percent per year should do the trick.
—John Greenwood, National Review, 15 Jan. 2024
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
Cite this Entry
“Quantity theory.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/quantity%20theory. Accessed 31 Oct. 2025.
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