@inbook{10.7312/bart16628.14,
URL = {http://www.jstor.org/stable/10.7312/bart16628.14},
abstract = {IN SECTION 3.2, we have observed that money creation was absent from relationship 3.43, which shows the impact of hoarding (respectively dishoarding) on the fluctuations in aggregate nominal spending. The fundamental equation of monetary dynamics, which Allais presented in 1968, not only corrects this omission, but it also explains the fluctuations in money velocity.¹The major contribution of the fundamental equation of monetary dynamics is indeed to introduce the relative difference between effective and desired money in the differential expression of the Newcomb-Fisher equation of exchange, thereby showing that this is the factor that causes money velocity to fluctuate. Alongside},
bookauthor = {Eric Barthalon},
booktitle = {Uncertainty, Expectations, and Financial Instability: Reviving Allais's Lost Theory of Psychological Time},
pages = {95--112},
publisher = {Columbia University Press},
title = {The Fundamental Equation of Monetary Dynamics},
year = {2014}
}