Quotes from The Clash of Economic Ideas

By Lawrence White (2012)

• The quantity theory is not the right theory for analyzing endogenous changes in M and P brought about by a shift in the world supply or demand curves for silver or gold.#
  EconomicsMoney
• The quantity theory of money assumes a vertical supply curve for money units, whereas the supply of silver is upward sloping.#
  EconomicsMoney
• A likely contributing factor to measured velocity’s going off its previous track was the deregulation of interest on bank accounts. If so, then the adoption of a banking reform that Friedman supported ironically undermined the case for monetary reform he had supported to that point.#
  EconomicsHistory

F.A. Hayek, Monetary Theory and the Trade Cycle (1933)

• The rate of interest at which, in an expanding economy, the amount of new money entering circulation is just sufficient to keep the price-level stable, is always lower than the rate which would keep the amount of available loan-capital equal to the amount simultaneously saved by the public: and thus, despite the stability of the price-level, it makes possible a development leading away from the equilibrium position.#
  EconomicsMoney