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The Quantity Theory is Always and Everywhere Controversial—Why? *
Author(s) -
LAIDLER DAVID
Publication year - 1991
Publication title -
economic record
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.365
H-Index - 42
eISSN - 1475-4932
pISSN - 0013-0249
DOI - 10.1111/j.1475-4932.1991.tb02559.x
Subject(s) - causation , economics , ideology , mechanism (biology) , positive economics , sorting , neoclassical economics , epistemology , mathematical economics , philosophy , law , political science , mathematics , politics , algorithm
Controversy about the Quantity Theory has been marked by common themes since the 18th century. These include the definition of money, the relationship between correlation and causation, and the transmission mechanism. Controversy has continued because of the technical difficulty of sorting out the direction of causation running between money and prices, and, on a deeper level, because ideological concerns about the viability of market mechanisms are at stake in the controversy.