Quantity theory of Money and its relevance



(Note: I will also be writing a lot about economics-related topics in this website. Topics can range from simple theories to different ideas of famous economists and their relevance. I will try to write as short as possible).

Generally, quantity theory of money asserts that nominal income is determined by the growth of the money supply and it is represented by the following equation:

i)Money Supply * Velocity of Circulation = Price Level * Output

Visit Quantity theory for more.



2 Responses to “Quantity theory of Money and its relevance”

  1. sinderella Says:

    svabodu belarusii

    I cogitating it worked out whole, his dam said. Leena ki ukhadi saans thodi shaant huyi tab boli, ha, phalli baar pi svabodu belarusii hun.

  2. padam raj poudel Says:

    Date March 20, 2007

    The Ambassador for the Republic of Korea

    Reference Discourage “Muscle-Trading”

    Salutation -Your Excellency

    As it is learned that Korea included Nepal under Employment Permit System to minimize the labor shortage of the Korean businesses and Industry, and here we want to draw your attention to the facts that are adverse to the Nepalese socio-economic and political context.

    1.The remittance Nepalese workers send to Nepal has widened the poverty gap in our society, for those of earning bracket are encouraged to migrate to the city, whereas the rural poverty has been increasing despite such increase in the remittance historically, and recent studies shows that such economical disparities has contributed to the inter class conflict in Nepal.

    2. The prospective workers pay heavy amount to the Manpower agents, and now they are supposed to pay the same amount to the government officials, and your selection criteria and procedures are not error free, therefore this process may invite social and political attention which will be counter-productive to the ongoing peace process of Nepalese political space, because normally Nepalese bureaucracy is corrupted and so are the political agents. It can influence the nearing election to the constituent assembly.

    3. As Nepal is heading towards sustainable peace with the resolution of the decade long conflict, and at this point she needs more productive manpower to accomplish her dream of a prosperous Nepal, and your proposal ignores this fact.

    4. Systematic “Muscle-Trading” through official involvement is a product of Colonial era when the Empire was in need of muscle power to realize its dream, and as a democratic nation of the East, you please discourage such practices by terminating the issue unilaterally. It will be good for us to work for the self sufficiency and sustainable development patterns.

    5. Finally, our national agenda is “Building of a New Nepal” and the most important resources for this great cause is Human Resources, therefore please do not temp Nepalese work force with relative luxury and payment, but , if you are really interested in the development of this country, please extend your cooperation to the building of the infrastructures and technology transfer so that Nepal could improve the quality of life of her people in an equitable and sustainable manners in times to come.

    Hope this letter may help reshape your ideas in cooperation issue and your country will certainly encourage self-sufficiency initiation that Nepal is incorporating through social, economic and political reforms.

    With all the best regards

    Padam Raj Poudel

    Asian Center for Peace and Development Studies
    Rani Bari, Kathmandu, Nepal

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