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
Recent Examples on the Web
By ignoring the quantity theory of money and employing neo-Keynesian macroeconomic models, central bankers are often wrong-footed.
—
Nino Paoli,
Fortune,
21 Aug. 2025
Leaving aside such omissions, what does the quantity theory of money have to say about inflation?
—
John Greenwood,
National Review,
15 Jan. 2024
In context, Friedman wasn’t saying that the quantity theory of money had been unsuccessful and that there is no relationship between the money supply, broadly measured, and inflation.
—
WSJ,
22 Jan. 2023
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Nino Paoli,
Fortune,
21 Aug. 2025
Leaving aside such omissions, what does the quantity theory of money have to say about inflation?
—
John Greenwood,
National Review,
15 Jan. 2024
In context, Friedman wasn’t saying that the quantity theory of money had been unsuccessful and that there is no relationship between the money supply, broadly measured, and inflation.
—
WSJ,
22 Jan. 2023
Cite this Entry
“Quantity theory.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/quantity%20theory. Accessed 5 Jul. 2026.
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