Importing the Unusable: The Quantity Theory and the LDC's

Salim Rashid ()

Journal of Developing Areas, 2012, vol. 46, issue 1, 389-400

Abstract: The relevance of the Quantity Theory of Money to Developing economies is questioned. A skeptical examination of the facts upon which the theory is based, as well as of the theory itself , reveals much weakness. Indeed, it is the evidence from the developed economies that suffices to justify skepticism about the Quantity Theory. Money is a means to effect transactions and savings; what will be used as money depends upon such a miscellany of factors that no 'theory' can be expected to emerge. Monetary policy will be dependent on so many specific factors that most LDC's are probably better off using the general principles to develop their own 'theory'.

Keywords: Monetary Theory; Quantity Theory; Monetary Policy; Economic Development (search for similar items in EconPapers)
JEL-codes: B5 E5 O1 O2 (search for similar items in EconPapers)
Date: 2012
References: Add references at CitEc
Citations:

Downloads: (external link)
http://muse.jhu.edu/journals/journal_of_developing_areas/v046/46.1.rashid.html

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:jda:journl:vol.46:year:2012:issue1:pp:389-400

Access Statistics for this article

More articles in Journal of Developing Areas from Tennessee State University, College of Business Contact information at EDIRC.
Bibliographic data for series maintained by Abu N.M. Wahid ().