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French economists and the purchasing power of money

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When French economists read the purchasing power of money, they were primarily interested in the equation of exchange and the reformulation that Fisher proposed regarding the quantity theory of money. This reading led them to ponder the meaning that should be given to this theory and to study its empirical significance. Some of them, namely Rueff and Divisia, went further still and considered Fisher's work as a starting point for their own analyses, which were related in particular to the monetary index, the integration of money into general equilibrium theory and the analysis of monetary phenomena in an open economy.
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Keywords: integration of money into general equilibrium; marginal utility of money; price index; quantity theory of money; theory of purchasing power parity

Document Type: Research Article

Affiliations: University of Cergy-Pontoise, THEMA, 33 Boulevard du Port, Cergy-Pontoise, 95011, Cedex, France,

Publication date: April 1, 2013

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