Heart of quantity theory: price-level cannot change without prior change in money, deposits, trade, or velocities: independently rising price-level, unable to alter trade or velocities, would drive money away, and so be unable to sustain itself; individual prices can rise independently, but other prices must fall to compensate 292-295 Criticism: argument impressive only because it assumes an _uncaused_ rise in general price-level; when causes assigned, prices can independently rise, compelling modification in other factors in "equation of exchange"; "transitional" and "normal" effects: instances 295-299 Quantity theory conflicts with supply and demand: supply and demand holds good: particular prices and price-level 299-300 Generalization of conflict to include cost of production, capitalization theory, imputation theory 300 Capitalization theory _vs._ quantity theory; different psychological assumptions of the two theories 300-306 Cost of production _vs._ quantity theory; money-_income_ _vs._ quantity of money 306-308 Quantity theory false, granting all its assumptions 308-310 Doctrine that price-level independent of particular prices, and presupposed by them, false; absolute value of money, not price-level, presupposed; price-level may change with value of money constant, through changes in absolute values of goods 310-314 CHAPTER XVI THE QUANTITY THEORY AND INTERNATIONAL GOLD MOVEMENTS Quantity theory holds that gold movements depend on price-_levels_; but price-level mere average, cause of nothing 315-316 Some prices, rising, tend to repel gold, but most prices have no such effect 316-317 Some prices, rising, bring in gold 317-319 Gold movements and money-rates 319-320 CHAPTER XVII THE QUANTITY THEORY _vs._ GRESHAM'S LAW 321-323 CHAPTER XVIII THE QUANTITY THEORY AND "WORLD PRICES" Types of quantity theory: world's volume of _gold vs._ quantity of _money_ in given country; standard _vs._ token money; abandonment of dodo-bone theory and "equation of exchange" 324-326 Credit does not rest on money: measure of values _vs._ reserves; loans and wealth; value of money _vs._ price-level 326-328 Loose relation of reserves and credit in world as whole; no proportionality of quantity of gold to value of gold; no quantity theory needed to assert that value of gold related to its quantity 328-330 CHAPTER XIX