Definitions for "Quantity theory of money"
The classic theory of the price level and therefore of inflation, building on the equation of exchange and the additional assumption that velocity of money is constant. Together, these imply that the rate of inflation equals the rate of growth of money minus the rate of growth of real output.
The theory that the velocity of money is predictable, so changes in the money supply have predictable effects on nominal income.
The proposition that a change in the growth rate of the money supply brings an equal percentage change in the inflation rate.