A Monetarist Framework for Aggretative Analysis

In developed, capitalist economies, relatively small fluctuations in production or expenditure for goods and services are accompanied or preceded by relatively large fluctuations in the prices and returns on claims and debts of various kinds. Fluctuations in the prices, volume and composition of claims held, issued and acquired by the principal financial institutions, by households and by firms are in turn, accompanied or preceded by changes in the stock of money.