Pat Gunning still clings to the Keynesian myth that the state of   
unemployment has anything to do with whether changes in the supply of   
money (H = currency) relative to its demand affect the price level.   
Thus, he writes: "Richard, I believe, is making the logically (or   
mathematically) correct point that, with unemployment, an exogenous   
increase in the quantity of money which causes a subsequent increase in   
aggregate demand need not cause an increase in prices. It depends on   
whether there are idle resources."  
  
In the first place, the claim is not mathematically correct.  Verify   
that from the price level equation: P = H/ky.  (By the way, Lipsey   
didn't mention the quantity of money in his posts.  He talked about   
increases in nominal income.)  
  
Second, look around the world.  Is it only in countries where there is   
"full employment" that increases in the quantity of money are associated   
with increases in prices?  All the data I have seen show otherwise.  
  
It's about time we gave up on the Keynesian myth, I repeat.  
  
James Ahiakpor