Describe the main clues of the development of monetary quantity theory in the 2030s of the 20th cent

The quantity theory of money is a monetary theory that uses the change in the quantity of money in circulation to explain the change of commodities, and before Ricardo, Hume was considered to be the representative of this theory. Ricardo always adhered to the labor theory of value and applied this principle to money, saying: "The number of such deminished silver coins exceeds the number of silver coins that can be maintained in circulation with only undeminished silver coins, and so it depreciates in value and decreases in color."

Whether a currency depreciates or not depends entirely on whether it is in excess of its quantity, not on whether it is a secondary currency or a major currency. Both classical and modern monetary quantity theory, in explaining the relationship between the quantity of money and the price level, actually assume that the transmission process of monetary policy is unimpeded. That is to say, the base money supplied by the bank, the money supply formed by the multiplier expansion of financial institutions and the market, is completely applied to the real economy.

The chapter also focuses on the debate over credit cycle theory that took place in the twentieth century, and the major participants in this debate had a profound impact on the major schools of modern macroeconomics and monetary theory. The conclusion of the analysis is that the development of the theory of the credit cycle is essentially an attempt to combine the neoclassical marginalist theory of value and the monetary theory, and to incorporate the explanation of cyclical phenomena into the neoclassical economic equilibrium theory system.

As explained above, the Swedish school was formed and developed from the theoretical framework of the neoclassical school under the situation of an unprecedentedly serious economic crisis that broke out in the 20 and 30 s of this century. It has the following characteristics compared to the neoclassical school:

1 Pioneered the "one-point method" of economic analysis. The neoclassical school believed in Say's law and the quantity theory of the old money, and regarded the change of money and the change of the economy as two separate things, while the Swedish school was the first to combine the two to create the theory of monetary economy.

2 Advocate dynamic economics in an attempt to mend the defects of static economic theory, and their dynamic economics is closely related to their monetary economic theory, which is called monetary equilibrium theory.

3 In order to complete the analysis of a dynamic economy, a series of new economic terms and economic categories have been developed in terms of the methods and tools of economic analysis. It advocates the distinction of some economic variables such as capital value, income, investment, savings, cost, etc., into ex-ante and ex-post values. It advocates the use of period analysis, process analysis, and sequence analysis to explain the process of economic movement and change.

4. Incorporate expectations into economic analysis, emphasizing the "decisive" role of expectations in economic operation.

5. Emphasis on purely theoretical research, and deriving policy recommendations from economic theory, advocating state intervention in the economy. Most of the leading members of this school were directly involved in the formulation and implementation of Swedish economic policy. Therefore, the theories of the Swedish school have an important guiding role in Swedish economic policy. In terms of its purely theoretical research, for example, its influence on the Keynesian school's macroeconomic theory and the idea of state intervention is more obvious.

6. Focus on the study of international economic theory and economic system theory. Sweden is a highly open country, but at the same time a country with a strong tradition of social democracy. Proceeding from the national conditions, the economists of the Swedish school naturally paid more attention to the study of international economic theory and the theory of the social democratic economic system, and achieved considerable results.

Some of these theories have had a wide and far-reaching impact in the West, such as: international ** theory.

---1.Classical economics. From the mid-17th century to the 70s of the 19th century, including the English economists Smith, Ricardo, Senior, Mill, Malthus, and the French economist Say.

Represented by Smith, whose 1776 publication of The Wealth of Nations was called the first revolution in economics, establishing a laissez-faire-centered economic system, and he marked the birth of economics. The representative textbook is Mill's Principles of Political Economy and Its Application to Social Philosophy, which has been popular for 20 years.

2.Neoclassical economics. From the beginning of the "marginal revolution" of the 19th century to the 30s of the 20th century.

Including the British economists Jerwin Shi and Marshall, and the French economist Walras - the marginal utility theory of value is said to be the second revolution in economics, he marked the beginning of neoclassical economics, and Marshall's "Principles of Economics" published in 1890 is its representative textbook.

3.Modern Economics. It began with the emergence of Keynesianism in the thirties of the 20th century.

These include British economists John Maynard Keynes, Joan Robinson, and Slaval, as well as American economists Samuelson, Friedman, and Lucas. Among them, Keynes's "General Theory of Employment, Interest and Money" published in 1936 marked the birth of contemporary economics, which is known as the four major works that changed world history along with Einstein's "Theory of Relativity", Darwin's "Origin of Species", and Marx's "Capital".

Oh, I only know that it's a foreigner.

As soon as you look at the name, you know that you are a foreigner.

The British, I don't know that.