Thursday, November 22, 2012

Richard Duncan quote

“In recent decades, the usefulness of the quantity theory of money as a tool for analyzing changes in the economy has broken down because the extraordinary expansion of credit has made money irrelevant in comparison. The money supply is no longer the most important factor affecting economic change. It is the credit supply that matters now. Consequently, the quantity theory of money must be adjusted to reflect that fact.” –Richard Duncan, The New Depression