Monetary Theory
Categories: Econ, Financial Theory
Monetary theory is the same thing as monetarism: the school of thought that believes the economy is driven by money supply—the amount of dollars floating around in the system—not by demand for things, like Keynesians believe.
The main stitch: MV = PQ, which means the velocity of money (M x V) equals the total money of stuff bought (P x Q).
See: Monetarism.