Part 1/11:
The Quantity Theory of Money: An Overview
In a recent discussion on economic policies and their implications, Professor Steve Hanke from John Hopkins University highlighted what many modern economists seem to be neglecting: the Quantity Theory of Money (QTM). This theory, a cornerstone of economic thought dating back to the 16th century, is crucial for understanding the impacts of changes in the money supply on the economy. Unfortunately, Hanke argues that many current analysts and central banks have 'thrown it out the window', focusing instead on immediate, data-dependent analyses which often overlook the longer-term effects of monetary policy.