Sproul, Michael (2018): The Real Meaning of the Real Bills Doctrine (revised Nov., 2018).
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Abstract
The real bills doctrine asserts that money should be issued in exchange for short-term real bills of adequate value. Critics of this doctrine have thought of it as a means to make the money supply move in step with the production of goods, a task at which it supposedly fails. In this essay I explain that the real bills doctrine is actually a means to make the money supply move in step with the money-issuer’s assets. When viewed this way, I find that the real bills doctrine is an effective means to prevent inflation. More importantly, the real bills doctrine is a means to make the quantity of money grow and shrink with the needs of business, thus preventing money shortages and the resulting recessions.
Item Type: | MPRA Paper |
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Original Title: | The Real Meaning of the Real Bills Doctrine (revised Nov., 2018) |
English Title: | The Real Meaning of the Real Bills Doctrine (revised Nov., 2018) |
Language: | English |
Keywords: | real bills, backing, money, inflation, recession |
Subjects: | E - Macroeconomics and Monetary Economics > E5 - Monetary Policy, Central Banking, and the Supply of Money and Credit E - Macroeconomics and Monetary Economics > E5 - Monetary Policy, Central Banking, and the Supply of Money and Credit > E50 - General |
Item ID: | 90012 |
Depositing User: | Michael Sproul |
Date Deposited: | 22 Nov 2018 07:17 |
Last Modified: | 27 Sep 2019 07:52 |
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URI: | https://mpra.ub.uni-muenchen.de/id/eprint/90012 |