ABSTRACT
But first let us be clear what we mean by quantity of money and quantity of goods. By money we mean anything which has a general purchasing power, by goods anything that is purchasable. But a statement of the number and denomination of the coins and notes, and of the size of the bank deposits upon which cheques may be drawn at a particular time affords no information about the quantity of money in its bearing upon prices. Similarly, a statement of the number of the various commodities and services which constitute the stock of purchasable things at a particular time sheds no light upon quantity of goods for the purpose of price-change.
