----------------- HES POSTING ----------------- Larry Moss said: << For example, among the classical school writers the quantity tradition held that an overall rise in prices, initiated perhaps by a generalized rise in wages, would not stick unless the overall supply of cash (liquid) balances were increased as well.>> This is rather more a "Real Bills" causality than the standard M to P causality of the QTM. There are those that consider "Real Bills" to be a "quantity" theory of sorts, but the P to M causality and the strict assumption of endogenous money is definitely in diametric opposition to the fundamental propositions of the QTM. Chas Anderson ------------ FOOTER TO HES POSTING ------------ For information, send the message "info HES" to [log in to unmask]