Audio Mises Wire

A Praxeological Critique of the Equation of Exchange and Neutrality of Money

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No macroeconomics or monetary theory course is complete without introduction of the Equation of Exchange, or MV = PQ. However, this equation explains nothing, praxeologically speaking. Instead, it clouds our understanding of how money fits into our economy. 

Original article: A Praxeological Critique of the Equation of Exchange and Neutrality of Money

 

 

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