David Hume’s Monetary Theory Revisited: Was He Really a Quantity Theorist and an Inflationist?

@article{Wennerlind2005DavidHM,
  title={David Hume’s Monetary Theory Revisited: Was He Really a Quantity Theorist and an Inflationist?},
  author={Carl Wennerlind},
  journal={Journal of Political Economy},
  year={2005},
  volume={113},
  pages={223 - 237}
}
  • C. Wennerlind
  • Published 13 January 2005
  • Economics
  • Journal of Political Economy
David Hume’s monetary theory has been controversial since its formulation. Lately, the focus has been on Hume’s alleged misapplication of the quantity theory of money. While he appears to subscribe to a simple quantity theory with money neutrality, in a famously contested passage in the essay Of Money, he violates the neutrality condition by claiming that an increase in the money stock has favorable output effects. While most commentators argue about the persistence of the output effect, this… 

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