The Quantity Theory of Money and the Theory of Credit Creation have been the major streams in the study of the quantity of money.Nowadays,monetary theory is dominated by the Quantity Theory of Money because the Moneta...The Quantity Theory of Money and the Theory of Credit Creation have been the major streams in the study of the quantity of money.Nowadays,monetary theory is dominated by the Quantity Theory of Money because the Monetarist School and the Rational Expectation School are both the advocates of the Quantity Theory of Money,which has resulted in a sharp decrease of scholars studying the Theory of Credit Creation.Nevertheless,the two theories will ultimately converge.Given that reason,we propose a new theory-Dynamic Quantity Theory of Money in this paper,by which the unification of the Quantity Theory of Money and the Theory of Credit Creation can be achieved.Based on the Dynamic Quantity Theory of Money,we further put forward the Theory of Money Operation Cycle,the Theory of Monetary Compensation and Theory of Investment Compensation targeting economic crises,expound why Quantitative Easing monetary policy fails and why Quantitative Easing does not cause inflation in the short term under the premise of these theories,and demonstrate the necessity of fiscal investment for rescuing economic crisis from the perspective of theories of money.展开更多
Research question includes affect of monetary policy on product＇s demand. Monetary policy may increase demands in markets for firm＇s products. Assumption of study is that markets need money for demand. It is figured...Research question includes affect of monetary policy on product＇s demand. Monetary policy may increase demands in markets for firm＇s products. Assumption of study is that markets need money for demand. It is figured as market theory. Research topic explores theory of market and world money concept. It aims to use world money in market theory. This study adopts case exploration of Keynes, Friedman, and Fisher. This study is based on their figures. This study defends that world money is applied in global economy by quantity of global GDP. It is 60 trillion dollars, and 10% of that amount may become world money. Result of this study is that world money concept is applied through Fisher＇s quantity theory in world economy. Major conclusion is that markets need money to increase demand, aligned with market theory, and world money supplies money for markets.展开更多
文摘The Quantity Theory of Money and the Theory of Credit Creation have been the major streams in the study of the quantity of money.Nowadays,monetary theory is dominated by the Quantity Theory of Money because the Monetarist School and the Rational Expectation School are both the advocates of the Quantity Theory of Money,which has resulted in a sharp decrease of scholars studying the Theory of Credit Creation.Nevertheless,the two theories will ultimately converge.Given that reason,we propose a new theory-Dynamic Quantity Theory of Money in this paper,by which the unification of the Quantity Theory of Money and the Theory of Credit Creation can be achieved.Based on the Dynamic Quantity Theory of Money,we further put forward the Theory of Money Operation Cycle,the Theory of Monetary Compensation and Theory of Investment Compensation targeting economic crises,expound why Quantitative Easing monetary policy fails and why Quantitative Easing does not cause inflation in the short term under the premise of these theories,and demonstrate the necessity of fiscal investment for rescuing economic crisis from the perspective of theories of money.
文摘Research question includes affect of monetary policy on product＇s demand. Monetary policy may increase demands in markets for firm＇s products. Assumption of study is that markets need money for demand. It is figured as market theory. Research topic explores theory of market and world money concept. It aims to use world money in market theory. This study adopts case exploration of Keynes, Friedman, and Fisher. This study is based on their figures. This study defends that world money is applied in global economy by quantity of global GDP. It is 60 trillion dollars, and 10% of that amount may become world money. Result of this study is that world money concept is applied through Fisher＇s quantity theory in world economy. Major conclusion is that markets need money to increase demand, aligned with market theory, and world money supplies money for markets.
