Monetary Policy and Inflation: Quantity Theory of Money

Recent years have seen a return to high inflation that has sparked debate about the causal role of monetary policy in significant price increases, especially in the context of the quantity theory of money. This book builds upon a long-accepted tradition of quantity theory of money in explaining long-run inflation levels.

It elucidates how and why – despite its important limitations – the theory can be applied throughout history, including the 2022 spikes in inflation. It also demonstrates ho...