Modern Quantity Theory: Monetarism

It is believed that only price level is only affected by money supply and price level changes one to one with the changes in money stock.
Milton Friedman, who is a Nobel Prize winner, also a Monetarist, focused on the function of monetary policy on conduct of prices and output. He with some other Monetarists argued that it is only in the short run when quantitative easing affects output level.

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