Wednesday, April 25, 2007
The Real Bills Doctrine (Paper 3)
A great explanation of the real bills doctrine is delivered in the writings by Mike Sproul. He gives a watertight argument for the theory complete with background information about the terms associated. This article is divided into eight sub categories which each provide useful information. The author discusses the history of money and how it relates to backed money, fiat money, and the real bills doctrine. This website is especially useful because it gives a complete discussion of the real bills doctrine. The author even included response from his colleagues which both agreed and disagreed with him. This source is much more reliable than most others on the web because it focuses on more than one specific aspect of the theory. Mr. Sproul has covered all aspects of the real bills doctrine and gives a compelling argument. He believes that the failure of economists to understand the real bills doctrine is what has led to economics catastrophes such as recessions, depressions, inflation, and currency crises. There is already a post on my blog about this theory, so I will not bore you with details. Anyone interested in understanding monetary policy and inflation should begin with reading this paper.