“It has been frequently assumed that V is constant; and this indeed is the cornerstone of the quantity theory of money. But it seems fairly obvious that the velocity of circulation in fact depends on the short-term rate of interest.”

— Michał Kalecki

Source: Theory of Economic Dynamics (1965), Chapter 6, The Short Term Rate of Interest, p. 73

Adopted from Wikiquote. Last update June 3, 2021. History

Help us to complete the source, original and additional information

Do you have more details about the quote "It has been frequently assumed that V is constant; and this indeed is the cornerstone of the quantity theory of money. …" by Michał Kalecki?

Michał Kalecki photo

Michał Kalecki 16

Polish economist 1899–1970

Related quotes

“For both long and short periods there is a consistent though not precise relation between the rate of growth of the quantity of money and the rate of growth of nominal income. If the quantity of money grows rapidly, so will nominal income, and conversely. The relation is much closer for long than for short periods”

Milton Friedman (1912–2006) American economist, statistician, and writer

Source: Money Mischief (1992), Ch. 2 The Mystery of Money

“Knowledge is like money: To be of value it must circulate, and in circulating it can increase in quantity and, hopefully, in value.”

Louis L'Amour (1908–1988) Novelist, short story writer

Source: Education of a Wandering Man

“I must now explain what I mean by the quantity of action. A certain action is necessary for the carrying of a body from one point to another: this action depends on the velocity which the body has and the space which it describes; but it is neither the velocity nor the space taken separately. The quantity of action varies directly as the velocity and the length of path described; it is proportional to the sum of the spaces, each being multiplied by the velocity with which the body describes it. It is this quantity of action which is here the true expense (dépense) of nature, and which she economizes as much as possible in the motion of light.”

Pierre Louis Maupertuis (1698–1759) French mathematician, philosopher and man of letters

Histoire de l'Academie (1744) p. 423; Les Oeuvres De Mr. De Maupertuis (1752) vol. iv p. 17; as quoted by Philip Edward Bertrand Jourdain, The Principle of Least Action https://books.google.com/books?id=y3UVAQAAIAAJ (1913) p. 5.

“The second part of the book… contains an exposition of the first principles of the theory of complex quantities; hitherto, the very elements of this theory have not been easily accessible to the English student, except recently in Prof. Chrystal's excellent treatise on Algebra. The subject of Analytical Trigonometry has been too frequently presented to the student in the state in which it was left by Euler, before the researches of Cauchy, Abel, Gauss, and others, had placed the use of imaginary quantities, and especially the theory of infinite series and products, where real or complex quantities are involved, on a firm scientific basis. In the Chapter on the exponential theorem and logarithms, I have ventured to introduce the term "generalized logarithm" for the doubly infinite series of values of the logarithm of a quantity.”

E. W. Hobson (1856–1933) British mathematician

A Treatise on Plane Trigonometry https://books.google.com/books?id=_ktLAAAAMAAJ (1891) Preface

“The reader might reflect that an awful lot of supposing has to take place in order for the quantity theory of money to be true.”

Paul Ormerod book The Death of Economics

Part I, Chapter 5, Mechanistic Modelling, p. 95
The Death of Economics (1994)

“Instead of paying interest to those who have more money than they need and in order to keep money in circulation, people should pay a small fee if they keep the money out of circulation.”

Margrit Kennedy (1939–2013) German architect

Source: Interest and Inflation Free Money (1995), Chapter Two, Creating an Interest and Inflation Free Money, p. 37 (See also: Wörgl Austria.)

“Momentum may be roughly described as quantity motion. A body moving at a speed of say twenty an hour, has a certain quantity of motion. If the body goes forty miles an hour there is twice as motion; or if twice as much matter goes twenty miles hour, there is also twice as much motion. Momentum is measured by the quantity of matter moving at a rate mass \times velocity.”

William Kingdon Clifford (1845–1879) English mathematician and philosopher

"Energy and Force" (Mar 28, 1873)

“According to the Special Theory of Relativity, the velocity of a moving body is always less than the velocity of light. Since the energy of motion of a body depends on its inertial mass and its velocity, it follows that if the energy of a body is increased indefinitely by the continual application of a force, the inertial mass of the body must be increased too; for, if not, the velocity would ultimately increase indefinitely and exceed the velocity of light. Einstein found that, corresponding to any increase in the energy content of a body, there is an equivalent increase in its inertial mass. Mass and energy thus appeared to be different names for the same thing, the energy associated with a mass M being Mc2, where c is the velocity of light; and the mass M of a body moving with velocity v he found to be given by the following formulaM = \frac {m}{\sqrt{(1 - \frac {v^2}{c^2}}}</center”

Gerald James Whitrow (1912–2000) British mathematician

The Structure of the Universe: An Introduction to Cosmology (1949)

“As Branko says, there was a time when Serbs and Croats seemed to get along fairly well, indeed intermarrying at a high rate. But could anyone now put Yugoslavia back together? At this rate, we’ll soon be asking the same question about America.”

Paul Krugman (1953) American economist

The New Climate Of Treason https://krugman.blogs.nytimes.com/2017/07/14/the-new-climate-of-treason/ (July 14, 2017)
The Conscience of a Liberal blog

“String theory has a close relationship to quantum field theory — indeed in some sense it encompasses all interesting quantum field theories.”

Michael Green (physicist) (1946) British physicist

Related topics