Abstract
It will be seen from the fore-going pages that, in our
opinion, general prices are determined by the ratio existing
between the total supply of money end credit and the volume
of exchanges to be performed. But money end credit do not
always change in the same ratio, particularly if we regard
fairly long periods of time. Credit tends to expand in a
greater ratio, thereby influencing general prices to a more
marked degree than would be admitted by the "old" or "new"
Quantity Theorists. Nevertheless, credit cannot expand
indefinitely irrespective of the monetary basis on which it
ultimately rests.
If the principles advocated in this thesis are to be
refuted, it must be shown that prices are determined in
accordance with the principles supported by tr e adherents of
one or other of the other theories. But it seems correct to
state that expert economic opinion would not adopt any of those
theories, and until the necessary statistical material is
available, the question of the precise influence of money end
credit on prices must remain debatable.
