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:
“Friends, both the imaginary ones you build for yourself out of phrases taken from a living writer, or real ones from college, and relatives, despite all the waste of ceremony and fakery and the fact that out of an hour of conversation you may have only five minutes in which the old entente reappears, are the only real means for foreign ideas to enter your brain.”
—Nicholson Baker (b. 1957)
“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)
“But the doctrine of the Farm is merely this, that every man ought to stand in primary relations to the work of the world, ought to do it himself, and not to suffer the accident of his having a purse in his pocket, or his having been bred to some dishonorable and injurious craft, to sever him from those duties.”
—Ralph Waldo Emerson (1803–1882)