Monetary Quotes

“If we compare two static economic systems, which differ in no way from one another except that in one there is twice as much money as in the other, it appears that the purchasing power of the monetary unit in the one system must be equal to half that of the monetary unit in the other. Nevertheless, we may not conclude from this that a doubling of the quantity of money must lead to a halving of the purchasing power of the monetary unit; for every variation in the quantity of money introduces a dynamic factor into the static economic system. The new position of static equilibrium that is established when the effects of the fluctuations thus set in motion are completed cannot be the same as that which existed before the introduction of the additional quantity of money. Consequently, in the new state of equilibrium the conditions of demand for money, given a certain exchange-value of the monetary unit, will also be different. If the purchasing power of each unit of the doubled quantity of money were halved, the unit would not have the same significance for each individual under the new conditions as it had in the static system before the increase in the quantity of money.”

“If the State uses this power systematically in order to force the community to accept a particular sort of money whose employment it desires for reasons of monetary policy, then it is actually carrying through a measure of monetary policy. The States which completed the transition to a gold standard a generation ago, did so from motives of monetary policy. They gave up the silver standard or the credit-money standard because they recognized that the behaviour of the value of silver or of credit money was unsuited to the economic policy they were following.”

“Humility is a virtue of the heavenly, not arrogance. Are we the most superior beast on earth? No, not in strength and not in intelligence. It is very arrogant to assume that we are the most intelligent species when we keep repeating the same mistakes over and over again. Both rats and monkeys have been shown to learn from error, yet we have not. More people have died in the name of religion than any other cause on earth. Is massacring God’s creations really serving God – or the devil? And what father would want to see his children constantly divided and fighting? What God would allow a single human life to be sacrificed for monetary gain? Again, the Creator or the devil?”

“One must live with all, e'en if life be hell: Crime makes shame, not monetary stricture”

“When monetary dealing in religion stops, the religion will manifest its splendor!”

“He who cares to go to the trouble of demonstrating the uselessness of index numbers for monetary theory and the concrete tasks of monetary policy will be able to select a good proportion of his weapons from the writings of the very men who invented them.”

“If your monetary wealth accumulates naturally and spontaneously, then let it accumulate, but do not lean on it for support. You may take its support and feel a sense of relief, but there is no telling when that support will move away. Therefore, conduct yourself with caution from the beginning so that you are not shaken up during time of painful experiences.”

“Money is not indefinitely divisible. Even with the assistance of money-substitutes for expressing fractional sums that for technical reasons cannot conveniently be expressed in the actual monetary material (a method that has been brought to perfection in the modern system of token coinage), it seems entirely impossible to provide commerce with every desired fraction of the monetary unit.”

“All that the State need do, and can do, in order to preserve the monetary system undisturbed, is to refrain from such intervention. That is the essence of the monetary theory of the classical economists and their immediate successors, the Currency School. It is possible to refine and amplify this doctrine with the aid of the modern subjective theory; but it is impossible to overthrow it, and impossible to put anything else in its place. Those who are able to forget it only show that they are unable to think as economists.”