Fisher leading, most consistent, most uncompromising quantity theorist: wide acceptance of his views 154 Taussig _vs._ Fisher 155 Fisher and dodo-bone doctrine: logical part of quantity theory; Fisher's value concept 155-156 "Equation of exchange": analysis of Fisher's version, typical of all 156-171 In what sense equality between two sides of equation? Meaning of "T" 158-161 No "goods side" to equation; both sides sums of money; equal because identical; equation meaningless 161-162 All factors in equation highly abstract 162-163 "P" and "T" cannot both be given independent definitions: P defined as _weighted_ average, with T in denominator; and must be changed from year to year, as elements in T change, even though no prices change 164-166 This makes circular theory: _problem_ defined in terms of _explanation_ 165-166 Causal theory associated with equation of exchange 166 Equation amplified to include credit; not acceptable to Nicholson or Walker, and caricature of conditions in Germany and France 166-170 Book-credit, bills of exchange, etc., excluded 167-170 Why a one-year period? 170-171 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 CHAPTER X "NORMAL" VS. "TRANSITIONAL" TENDENCIES Quantity theory qualified by distinction between "normal" and "transitional" effects of change in quantity of money, etc. 186