CHAPTER IX. The Volume of Money and the Volume of Credit

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