Working Paper

The Quantity Theory of Money: An Assessment of its Real Linchpin Prediction

Claude Hillinger, Bernd Süßmuth
CESifo, Munich, 2010

CESifo Working Paper No. 2995

This study approaches the Quantity Theory of Money at a conceptual level, asking how it can be most reasonably interpreted and quantitatively assessed. The resulting approach is straightforward. Unlike studies relying on other methods we find evidence of its linchpin prediction that is not limited to periods of high inflation.

CESifo Category
Monetary Policy and International Finance
Keywords: quantity theory of money
JEL Classification: B220,E310,E410,E520