Monetarism restated David Hume’s quantity theory of money

Evidence

Indeed, monetarism was in many ways simply a restatement of the quantity theory of money that goes all the way back to David Hume. Its power lay in how it provided liberals with an alternative way of thinking about the macroeconomy to that offered by Keynes, one that put money front and center. In doing so, monetarist ideas not only reduced the appeal of the Keynesian instruction sheet, especially in the context of the inflationary 1970s, they helped enable austerity arguments some forty years later. — Mark Blyth, Austerity, 412

Categorization

• XREF: connects to: Postwar economists treated money as redistributionally neutral, echoing Hume’s view — Mark Blyth, Austerity: The History of a Dangerous…, 386

Broader Connections

• Postwar economists treated money as redistributionally neutral, echoing Hume’s view #corroborates (0.78) — Mark Blyth, Austerity, 386