The real bills doctrine was the practice of a central bank's issuing money in exchange for real bills which was erroneously seen as maintaining the gold standard.(Timberlake, (b) 2005) It is best known as "the decried doctrine of the old Bank Directors of 1810: that so long as a bank issues its notes only in the discount of good bills, at not more than sixty days’ date, it cannot go wrong in issuing as many as the public will receive from it.'"(Fullarton, 1845, p. 207) This theory is in opposition to the generally accepted Quantity Theory of Money proposed by Irving Fisher which states that money supply has a direct, positive relationship with the price level.
Read more about Real Bills Doctrine: History, Informative Example, Convertibility, Use, Bank Runs, Criticisms
Famous quotes containing the words real, bills and/or doctrine:
“A pregnant woman and her spouse dream of three babies—the perfect four-month-old who rewards them with smiles and musical cooing, the impaired baby, who changes each day, and the mysterious real baby whose presence is beginning to be evident in the motions of the fetus.”
—T. Berry Brazelton (20th century)
“Our checks are pale. Our wallets are invalids.
Past due, past due, is what our bills are saying
and yet we kiss in every corner, scuffing the dust
and the cat. Love rises like bread as we go bust.”
—Anne Sexton (1928–1974)
“There is no doctrine of the Reason which will bear to be taught by the Understanding.”
—Ralph Waldo Emerson (1803–1882)