Answer to Question #272367 in Macroeconomics for Saman Khalil

Question

What are the differences between the Fisherian and Cambridge versions of the

quantity theory of money?

Answer 1

Fisherian approach is one that emphasises the supply of money, while the Cambridge approach dwells more on both the demand and the supply of money. Also, while the Fisherian approach emphasizes on the medium of exchange function, the Cambridge approach emphasises the store of value of function of money.