The Quantity theory of money

 The quantity theory of money is a classical theory starting that the price
level is proportional to the quantity of money.
The starting point for the quantity theory of money is the equation of exchange
_an identity relating the volume of transactions (+) at current prices (PT) to the
supply of money (M) times the term over rate of each dollar (V).
The term over rate for money – which increases the average number of Timex
each dollar is used in transactions during the period is called the velocity of
money.
(1) Irving Fisher's identity is expressed as

MV=PT T
Where, M is the quantity of money
V is the transaction velocity of the money
PT is the price index for the items traded
T is the volume of transaction.

Another expression of the equation of exchange:

MV=PY
Here, M is the quantity of money
V is the income velocity of money
P is the price level
Y IS the income /average dollar us used in transaction evolving current output (Y)
=PY
 The Quantity theory of money
V=PY/M