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