In this article we will discuss about the Fisher’s quantity theory of money with its criticisms. The quantity theory of money states that the quantity of money is the main determinant of the price level or the value of money. Any change in the quantity of money produces an exactly proportionate change in the price […]
Fisher’s Quantity Theory of Money (With Criticisms)
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Cash Balance Approach of Money (With Criticisms)
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In this article we will discuss about the cash balance approach of money with its criticisms. Cambridge economists Marshall, Pigou, Robertson and Keynes formulated the cash balances approach. Like value theory, they regarded the determination of value of money in terms of supply and demand. Robertson wrote in this connection: “Money is only one of […]
Transactions Approach and Cash Balance Approach
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In this article we will discuss about the similarities and dissimilarities between transactions approach and cash balance approach of money. Similarities between Transactions Approach and Cash Balance Approach: The two approaches have the following similarities: 1. Same Conclusion: The Fisherian and Cambridge versions lead to the same conclusion that there is a direct and proportional […]