"But my shift to the serious study of economics gradually weakened my belief in Major Douglas's A+B theorem, which was replaced in my thought by the expression MV = PT"

James Meade's quote talks to the development of his believing on economics. He initially believed in Major Douglas's A+B theorem, which mentions that the overall amount of money in circulation is equal to the total amount of items and services produced. However, as he began to seriously study economics, his belief in this theorem started to compromise. He eventually changed it with the expression MV = PT, which stands for money times speed equates to price times transactions. This expression is a more precise representation of the relationship between money, costs, and transactions in an economy. It recommends that the total amount of cash in blood circulation is determined by the number of transactions multiplied by the typical rate of items and services. This expression is a cornerstone of contemporary economics and has actually been utilized to explain the results of inflation and deflation. Meade's quote is a testament to the power of understanding and the value of comprehending the complexities of economics.