Saturday, October 15, 2005
On the other hand, it was remarked by Professor Edgeworth that if the free coinage of gold be suppressed, the Governments themselves have in their hand the regulating of general prices. This, too, is true, at any rate so long as the present large production of gold persists; and even if it should cease, and gold become scarce, the Governments, no doubt, might supplant the lack in currency by a judicious emission of paper-money.
-- Knut Wicksell, “The Influence of the Rate of Interest on Prices” [1907]
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