Now that Keynes's and Friedman's models have been shown to be insufficient explanations of money demand, the quantity theory has returned as the dominant model.

Question

Quizplus · Accepted Answer

While the quantity theory of money remains influential, especially in long-term analyses, the field of economics has evolved to incorporate a variety of models and theories to explain money demand, rather than reverting to a single dominant model. Keynesian, Friedman's, and other approaches are still relevant and contribute to the understanding of money demand in different contexts.

Now That Keynes's and Friedman's Models Have Been Shown to Be