The government is able to acquire real goods through printing money. Because government does not create wealth through printing money, this revenue, the seigniorage, is at the expense of the public, as the purchasing power of monetary units decreases because of the issue of new money. The...

The quantity theory of money is applied in this article to define aggregate demand as a rectangular hyperbola that describes combinations of price level for different levels of real product with given quantity of money. The real product is measured on the X-axis as a quantity of composite...