Economics, Econometrics and Finance
5 years ago

Money Supply in Romania Directly Influences Consumer Prices, Study Finds

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The Romanian Statistical Review
Empirical Evidence for the Quantity Theory of Money: Romania – A Case Study
Alexandru Pătruţi, Alina Tătulescu

Paper Summary

The quantity theory of money suggests that changes in the amount of money in circulation affect prices. A study on Romania's consumer price index found that variations in the money supply over six years can fully explain changes in prices.

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