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That the increase in quantity of money will not render any influence on the prices, while
There is a partial employment at least one factor, and that degree
Uses of resources will increase in an exact proportion with increase
The effective demand caused by growth of quantity of money. When will be
The full employment of all factors, unit is reached from now on
Wages and the price will grow in an exact proportion with increase
Effective demand. Thus, if it is available completely elastic
The offer while there are not used resources, and is perfect
Not elastic offer when their complete employment, and if is reached
Effective demand is changed in the same proportion, as quantity of money,
The quantitative Monetary theory can be formulated as follows: "While
There is a partial employment of factors of production, degree of their use
The quantity of money will be changed in the same proportion, as; if it is available
Their complete employment the prices will be changed in the same proportion, as
Quantity of money ".
Having paid, however, a tribute of tradition introduction of sufficient number of the simplifying
Assumptions that has allowed us to formulate the Quantitative Monetary theory, we
Should take now into consideration possible complications, which in the real
The validity will influence a course of events:
1) effective demand will not be changed in an exact proportion with quantity
2) as resources are not homogeneous it will be available decreasing,
Instead of constant yield in process of gradual growth of their degree
3) as resources are not identical on degree of the efficiency,
The offer of some goods will appear not elastic already when still
There will be not used resources, suitable for production
4) wages unit will show the tendency to growth still to
How the full employment of all resources will be reached;
5) compensation of the factors which are a part of incremental costs
Productions, it will not be changed in an identical proportion.
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