What problems does the theory of money quantity reflect?

It should be divided into three theories and two viewpoints:

First, the classical school: Fisher (MV=PT) and Cambridge Equation (Md=kPY) reflect the deception of money on the real economy. The circulation of nominal money will not affect the real economy, but will only affect the price level.

Second, Keynes's monetary theory, in which money supply is exogenous M/P, and money demand is subdivided into three kinds of demands: transactional money demand k 1*Y, preventive money demand k2*Y, speculative money demand L(i), and according to the equality of supply and demand, M/P = K1* Y+K2 * Y+L (. This is the root of Keynes's monetary policy.

Thirdly, Friedman's monetary theory is actually mainly to discuss the specific problems of money demand in Cambridge equation with Keynes's knowledge. Please refer to/question/question/193363059.html.

The basic policy view is the same as classical, and the currency circulation must be stable to maintain economic stability.