>Doug Henwood wrote:
>
>>
>> Though if you believe in an endogenous money supply, as did Marx* and
>
>I remember the passage but I don't remember where it came from. Could
>you give the cite. I've been lazily looking for this for awhile because
>it might
>be useful on the Pound list. The "Chapter on Money" (which I'm currently
>reading) in the _Grundrisse_ goes round and round on this, but for the
>most part not in suitably pithy form for use on a listserv.
First quote:
"The amount of bills in circulation, therefore, just like the amount of banknotes, is determined solely by the needs of commerce."
is from Capital v. 3, p. 674 of the Vintage/Penguin edition.
Second quote:
"This much is clear, that prices are not high or low because much or little money circulates, but that much or little money circulates because prices are high or low; and, further, that the velocity of the circulating money does not depend on its quantity, but that the quantity of the circulating medium depends on its velocity...."
is from the Grundrisse, p. 195. I just love the Chapters on Money and Capital.
Doug