ABSTRACT
The manuscript reveals that Vilfredo Pareto had two main concerns the quantity theory of money. First, most fundamentally, the theory excludes interdependent influences between money and real economic phenomena. Second, single homogenous change in the price of all economic goods and services is correlated with changes in the quantity of money, which is at odds with observation of multiple and diverse price variations across a range of goods. Pareto's objection to the quantity theory of money concerned the literal proposition that the single price adjustment, (1/µ) in equations is revealed as equal for all economic goods. Pareto is at one with Walras in presenting general equilibrium as a successive integration of the theories of exchange, equilibrium and capital formulation. There are many references in Pareto's work to the weakness of monetary theory. From the manuscript it is now clear that Pareto went further in accommodating Léon Walras's ideas on monetary theory in general equilibrium than was previously thought.
