MV = PY, here the Y is fixed since it's exogenous, and V is fixed for the convenience of computation, so M controls the P... Okay I get that part, but what I wonder is that, when you fix the V , doesn't that make the k also fixed, which means kY , …

2021年4月22日 · Substitute 1/k for V in equation MV = YP to write the equivalent identity M/k = YP. Multiply both sides by k to write an equivalent identity M = kYP. Then if we let M and P vary but hold kY constant from one accounting period to another the delta notation only applies for the change in M and the change in P but not to the constant term kY ...

2022年1月4日 · However, it is not a tautology following rhetorical definition of tautology (used in propositional logic) as a statement that refers to itself repetitively (e.g. MV=PY is not the tautology the same way as saying that cat is a cat because it is cat). This applies to virtually any formula.

2023年6月12日 · The problem stands with the fact that there is no consensus on the exacts definitions of one element in particular of the equation MV=PT or MV=PY- the T/Y value.

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2016年2月9日 · $ MV=PY $ where, $ M $ is Quantity of Money $ V $ is Velocity of Money $ P $ is Price Level $ Y $ is Real GDP Could someone please share how the above common form of equation is converted to the growth rate form: $ \%\Delta M + \%\Delta V = \%\Delta P + \%\Delta Y $ Edit: Sorry the latex doesn't seem to be working. Unable to figure that out.

Mine is not an expert opinion, but just adding my thought since the question went unanswered. MV=PQ has got nothing to do with trade deficit. Nor the equation will be impacted by varying import/export. This is because PY is the nominal GDP. Which means, PY is inclusive of real gdp(C+I+G+(X-M)), where as (X-M) is the export-import.

2022年6月9日 · MV = PY. I am trying to develop an intuitive understanding of it. M = Money Supply, V = Number of Transactions, P = Average Prices, Y = Output/Income. The equation seems to suggest that if money supply and output are constant, then prices will keep rising with the number of transactions in an economy. Yet, this seems odd to me.

2019年11月21日 · Given that: MV=PY Or P = (M)(V) / Y Where M is the money supply, V velocity of money, P price level and Y real GDP Considering that the current rate of M2 is increasing at 7% per year over the...

2023年6月12日 · What's exactly the T/Y value in the Quantity Theory of money simplified equation: MV=PT or MV=PY? I understood the basic fundamental principle of the theory, that all things being equal, a change in the money supply affects price level.