MATHEMATICAL APPENDIX ON COMMODITY RESERVE MONEY
Consider first a static equilibrium system with a fixed nominal quantity of money M and a desired ratio of money to income k; in such a system the price level p is determined by the equation M = kp Y, where Y is real output, and the effect of a change in k is 
. Now consider a similar system producing a commodity whose quantity is represented by C and whose price is fixed at one unit of money by a commodity reserve system, and another commodity whose quantity is represented by X and whose (variable) ...
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