IDEAS home Printed from https://ideas.repec.org/a/jda/journl/vol.46year2012issue1pp389-400.html
   My bibliography  Save this article

Importing the Unusable: The Quantity Theory and the LDC's

Author

Listed:
  • Salim Rashid

    (University of Illinois, USA)

Abstract

The relevance of the Quantity Theory of Money to Developing economies is questioned. A skeptical examination of the facts upon which the theory is based, as well as of the theory itself , reveals much weakness. Indeed, it is the evidence from the developed economies that suffices to justify skepticism about the Quantity Theory. Money is a means to effect transactions and savings; what will be used as money depends upon such a miscellany of factors that no 'theory' can be expected to emerge. Monetary policy will be dependent on so many specific factors that most LDC's are probably better off using the general principles to develop their own 'theory'.

Suggested Citation

  • Salim Rashid, 2012. "Importing the Unusable: The Quantity Theory and the LDC's," Journal of Developing Areas, Tennessee State University, College of Business, vol. 46(1), pages 389-400, January-J.
    • Handle: RePEc:jda:journl:vol.46:year:2012:issue1:pp:389-400
    as

    Download full text from publisher

    File URL: http://muse.jhu.edu/journals/journal_of_developing_areas/v046/46.1.rashid.html
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    Monetary Theory; Quantity Theory; Monetary Policy; Economic Development;
    All these keywords.

    JEL classification:

    • B5 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches
    • E5 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • O2 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:jda:journl:vol.46:year:2012:issue1:pp:389-400. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Abu N.M. Wahid (email available below). General contact details of provider: https://edirc.repec.org/data/cbtnsus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.