Quantity Theory of Money: causes of inflation and its implications on monetary policies

What are the factors that cause inflation? A standard approach to analyse inflation is to use the famous “Quantity Theory of Money” shown below. it is originally formulated by Polish mathematician Nicolaus Copernicus in 1517 and later popularized by economists Milton Friedman and Anna Schwartz. MV = Py M = Money Supply V = VelocityContinue reading “Quantity Theory of Money: causes of inflation and its implications on monetary policies”