Abstract
Monetary Growth and Price Stability: France, I650-I700 European monetary historians usually explain long-run price behavior by the version of the Quantity Theory of Money developed by Irving Fisher: MV = PT. Rising or decling prices are related to increases or decreases in the supply of money. Some historians also tie monetary and price movements to real economic growth. In both approaches it is assumed that velocity (v) is constant.l Modern quantity theory has improved on the constant velocity assumption, and suggests a number of economic factors that can produce trend as well as cyclical movements in v. In this article the existing evidence on the money stock, prices, and levels of income in France from I650 to I700 are considered within an income version of the equation of exchange (MV' = Py). The evidence about these variables suggests that increases in the money stock relative to output do not explain price level movements.
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