tag="{http://www.w3.org/1999/xhtml}a">166-170

Book-credit, bills of exchange, etc., excluded 167-170 Why a one-year period? 170-171   CHAPTER IX

THE VOLUME OF MONEY AND THE VOLUME OF CREDIT Mill thought credit acts on prices like money, and that this reduces quantity theory tendency to indeterminate degree; Fisher holds volume of money in circulation governs volume of credit, so that quantity theory stands 172 Fisher's arguments for fixed ratio, money to bank-deposits 172-173 Argument a non-sequitur, even if contentions true 173-177 Contentions untrue: no fixed ratio between reserves and deposits, or reserves and demand liabilities, either in America or Europe 177-182 Taussig's views; virtually surrender of quantity theory in modern conditions 182-185 Bulk of quantity theorists in between Fisher and Taussig, but nearer to Fisher's view than to Taussig's 185   CHAPTER X

"NORMAL" VS. "TRANSITIONAL" TENDENCIES Quantity theory qualified by distinction between "normal" and "transitional" effects of change in quantity of money, etc. 186 Meaning of distinction, and extent of qualification hard to determine: is "normal period" real period in time? How long is "transitional period"? Is it realistic, or hypothetical? Is equation of exchange realistic? Concrete vs. hypothetical price-levels 186-189 Legitimate and illegitimate abstraction 189-190 Causation and temporal order 190-191 Fisher admits very slight qualification of "normal theory" 192 Mill's quantity theory "short run" theory; Taussig's "long run" theory; radically different logic in the two 192-193 Fisher's theory sometimes "long run" and sometimes "short run" 194-195   CHAPTER XI

BARTER Quantity theory spoiled if resort to barter possible and important 196 Extent of barter and other flexible substitutes for money and bank-credit; simple barter; different methods of corporate consolidations; flexibility, with state of money-market; clearing-house arrangements in speculative exchanges; offsetting book-credits 197-200 Barter made easier under money economy, by measure of value function of money 201 Bills of exchange; foreign trade 201   CHAPTER XII

VELOCITY OF CIRCULATION Velocity conceived by quantity theory as causal entity, independent of quantity of money and prices; necessary assumption for law of proportionality 203 "Coin-transfer" vs. "person-turnover" concepts 203-204 Velocity really non-essential by-product, meaningless average 204-205 Doctrine that velocity independent of money; habit and convenience; hoarding; hoarding by banks 205-209 Velocity and volume of trade; vary together public@vhost@g@gutenberg@html@files@34823@[email protected]#Page_209"