1Fisher formulated this approach with the equation of exchange which states that under any given conditions of industry and civilisation, deposits tend to hold a fixed or normal ratio to money in circulation. The equation of exchange is MV = PT, where Mis Money (including bank deposits), Vis the velocity of money, P is the general price level and T die volume of transactions. This equation eventually gave lise to die Quantity Tlieoiy of Money' which has dominated macro -economics for much of die last ceiltuiy.
Positive Money - How money is created full pdf book download
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