2017/06/30 by Zhao Jianglin, Jianglin, Zhao
Economics, Econometrics and Finance · #Economic Theory and Policy #Economic theories and models #Monetary Policy and Economic Impact
paper · pdf · doi:10.48550/arxiv.1707.00947
The aim of this paper is to reemphasize the money theory of exchange which is centered on the function of exchange medium of money, and make a contribution towards linearization of the quantity equation of exchange. A dynamical quantity equation is presented and an important balanced path of economic evolution is derived. To understand the business cycle we propose a hypothesis of natural cycle and driving cycle concerning the evolution of the balanced path and plentiful conclusions can be made.