Books

Irving Fisher's seminal work of monetary economics in which he introduced his famous equation of exchange, known as the Fisher Equation. 'The Equation is the identity MV = PT, where M is the stock of money; V its velocity, the average number of times per year a dollar of the stock changes hands; P is the average price of the considerations traded for money in such transactions; and T is the physical volume per year of those considerations. It is an identity because it is in principle true by definition' (New Palgrave). 'No other mathematical formulation in economics, perhaps no other in history save that of Albert Einstein, has enjoyed a greater vogue, and this continues without diminution to our own time' (Galbraith, A History of Economics, pp. 152-3). Fisher M-169.