The Macro class I’m TAing has just gotten to money growth and inflation, chapter 12 in Mankiw’s Brief Principles of Macroeconomics. As usual, the quantity equation, MxV = PxY, confuses some of the students a little bit, so I thought I’d see what I can do to clarify it a little. First, let’s define some [...]
Source: http://thebadeconomist.com/2011/03/04/money-neutrality-or-the-quantity-equation/
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