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:
“You know what’s wrong with you, Miss Whoever you are? You’re chicken. You’ve got no guts. You’re afraid to stick out your chin and say, “Okay, life’s a fact. People do fall in love. People do belong to each other, because that’s the only chance anybody’s got for real happiness.””
—George Axelrod (b. 1922)
“Listen to me. You come into this town, and you think you’re headed somewhere, don’t you? You think you’re gonna get there with a gun, but you’re not. Get me. You know why, ‘cause you got thousand dollar bills pasted right across your eyes. And someday you’re gonna stumble and fall down in the gutter, right where the horses have been standin’, right where you belong.”
—Ben Hecht (1893–1964)
“The great word Evolution had not yet, in 1860, made a new religion of history, but the old religion had preached the same doctrine for a thousand years without finding in the entire history of Rome anything but flat contradiction.”
—Henry Brooks Adams (1838–1918)