25/33 If the standard money alone were doubled in quantity, while the various forms of fiduciary money (smaller coins, bank notes, government notes) remained unchanged, the quantity of money as a whole would not be doubled. Indeed, in such a case, the method of exchange would be greatly altered. According to the quantity theory, therefore, prices would not be expected to double. #Practical application of the quantity theory#. Despite the number of changing factors affecting the methods of exchange and the amount of business, the quantity theory is a rule unable at any moment. |