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.
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