Answer to Question #81468 in Macroeconomics for Kelvin

Question

What are the differences between the Fisherian and Cambridge versions of the quantity theory of money?

Answer 1

Fisher’s approach emphasises the supply of money, whereas the Cambridge approach emphasises both the demand for money and the supply of money. In addition, whereas The Fisherian approach lays emphasis on the medium of exchange function while the Cambridge approach emphasises the store of value of function of money.