[DcifrThs]

[ QUOTE ]
Yes, Dcifr said it is a way to change the money supply. However, it is a relatively meaningless change in the money supply, increasing prices in proportion to the nominal change in M, since V and Q are unchanged, P has to double in nominal terms. Arithmetically: 2MV=P'Q P'=2MV/Q but MV=PQ, so P'=2P

Then the question becomes does V change because of the additional money circulating, since production has no reason to change. There may be some psychological effects I suppose, but I dont know of any compelling economic reason for V to change.

[/ QUOTE ]

would paying off nominal debt with fewer ounces of gold than promised count?

that seems economically important.

Barron