Meaning: The quote by James Meade reflects his intellectual journey from initially embracing Major Douglas's A+B theorem to eventually shifting towards the expression MV = PT in the study of economics. This transformation signifies a shift in his theoretical framework and understanding of economic principles.

Major C.H. Douglas was a British engineer and social credit theorist who proposed the A+B theorem as a solution to the perceived problem of insufficient purchasing power in the economy. According to Douglas, the gap between total incomes and total prices led to a deficiency in consumer purchasing power, which he sought to address through his A+B theorem. The theorem essentially suggested that the gap could be bridged by injecting additional income into the economy, independent of production. This concept gained traction among some economists and social reformers, who saw it as a potential solution to economic inequality and instability.

However, as Meade delved deeper into the study of economics, he began to question the validity of Major Douglas's A+B theorem. Meade's shift towards the expression MV = PT signifies his inclination towards the quantity theory of money, which is a fundamental concept in macroeconomics. In this equation, M represents the money supply, V stands for the velocity of money, P denotes the average price level, and T represents the volume of transactions in the economy. The equation suggests that the money supply, its velocity, and the volume of transactions determine the overall price level in the economy.

Meade's embrace of the quantity theory of money reflects a departure from the more interventionist and distributive approach proposed by Major Douglas. The quantity theory of money focuses on the relationship between money and prices, emphasizing the impact of monetary factors on the overall price level in the economy. This shift in focus indicates Meade's gravitation towards a more orthodox and widely accepted economic framework, which places a greater emphasis on monetary theory and its implications for price stability and inflation.

Meade's journey also highlights the evolution of economic thought and the continuous reassessment of theories and concepts within the discipline. As scholars engage with new evidence, data, and theoretical developments, their perspectives and beliefs may evolve, leading to a reevaluation of previously held notions. Meade's transition from the A+B theorem to the expression MV = PT exemplifies this intellectual evolution and the dynamic nature of economic theory.

Furthermore, Meade's experience serves as a reminder of the importance of critical thinking and empirical analysis in the field of economics. As scholars navigate competing theories and paradigms, they must engage in rigorous examination and evaluation of economic concepts to further the understanding of complex economic phenomena.

Ultimately, Meade's quote encapsulates the intellectual journey of an economist grappling with different economic theories and concepts, highlighting the dynamic nature of economic thought and the continuous quest for deeper understanding and insight within the discipline. As the field of economics continues to evolve, the exchange of ideas and the critical evaluation of theories will remain essential in advancing economic knowledge and addressing contemporary economic challenges.

In conclusion, Meade's transition from the A+B theorem to the expression MV = PT underscores the dynamic nature of economic thought and the ongoing evolution of economic theory. His intellectual journey reflects the importance of critical analysis and empirical scrutiny in advancing economic knowledge, while also highlighting the enduring quest for deeper understanding within the discipline.