##  [Quantity Theory of Money](/quantity-theory-money) 

  ##  [Quantity Theory of Money](https://social.quantumdictionary.io/quantity-theory-money-0) 

  

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**Social Sciences Dictionary**

 







 

 

 

 



 

 

 

 

Definition

A monetary theory stating that, for a given economy and period, the price level (P) equals the nominal money supply (M) times the velocity of money (V) divided by real output (Y) (MV = PY), and that when velocity and real output are sufficiently stable, proportional changes in M produce proportional changes in P.