Money-Transaction-Income Process: Quantification of Quantity Theory of Money
Keywords:
Money, Quantity theory, Fisher, Transaction, Income
Abstract
In this paper, we try to establish the relationship between money and income via transaction. In this regard, we use different processes of value-added production in the economy to find this lost chain in literature. According to our findings, we reformulate and generalize the quantity theory of money. Our empirical investigations confirm our model formulations.
References
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Pierce, D.G., D.M. Shaw [1974], Monetary economics, theories, evidence, policy; London, Butterworth.
Crystal, K.A. [1990]. (ed.) Monetarism, vol. I, II; Edward Elgar.
Cuthbertson, K. [1989]. The supply and demand for money. Basil Blackwell Inc., Cambridge.
Dean, E. [1965], (ed.), The controversy over quantity theory of money, D.C. Health & Company, a division of Raytheon education company Lexington, Massachusetts.
Fisher, D. [1980], Monetary theory and demand for money, Martin Robertson pub., Oxford.
Fisher, I. [1911], The purchasing power of money, its determination and relation to credit, interest and crises; assisted by H.G. Brown, reprinted by Augustus M. Kelly bookseller, 1963, New York.
Frenkel, J.A, H.G. Johnson [1980], (eds.), The monetary approach to balance of payment, 4th impression, George Allen & Unwin England.
Friedman, M., A.J. Schwartz [1982], Monetary trends in the United States and United Kingdom, their relation to income, price and interest rates 1867-1975, National Bureau of Economic Research.
Hume, D. [1752], of money, in writings on economics, edited by Eugene Rotwein (University of Wisconsin Press, 1970). Reprinted of selected essays from political discourses, 1752.
Johnson, H. G. [1979 ], (ed.), Selected Essays in Monetary Economics, 2nd impression, George Allen & Unwin, London.
Keynes, J.M. [1936], General theory of employment, interest, and money, Macmillan, London.
Komijani, A. [1983], Analysis of the modified money demand function and test for its stability through alternative econometric techniques; Ph.D. dissertation, University of Wisconsin – Milwaukee.
Laidler, D.E.W [1969]. The definition of money: theoretical and empirical problems, Journal of money, credit and banking, Aug.
Laidler, D.E.W. [1977], The demand for money: theories and evidence, 2nd ed., Harper & Row Inc., New York.
Mayer T. [1990], (ed.), Monetary theory, Edward Elgar, London.
Newlyn, W.T. [1974], Theory of money, Oxford University Press.
Patinkin, D. [1965]. Money, interest and prices, an integration of monetary and value theory, 2nd ed., Harper & Row, New York.
Pesek, B.P. [1979], Modern bank deposits, and the theory of optimum money, in economic perspective, an annual survey of economics. M.S. Ballabon (ed.), Baruch College of the City University of New York, Vol. I, Harwood Academic Publishers, Chur, New York.
Pierce, D.G., D.M. Shaw [1974], Monetary economics, theories, evidence, policy; London, Butterworth.
Published
2019-06-06
How to Cite
Bidabad, B. (2019). Money-Transaction-Income Process: Quantification of Quantity Theory of Money. Australian Finance & Banking Review, 3(1), 33-42. https://doi.org/10.46281/afbr.v3i1.300
Issue
Section
Research Paper/Theoretical Paper/Review Paper/Short Communication Paper
Copyright (c) 2019 Bijan Bidabad
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