Figures
1.1Index of the value of monetary unit, 1500–1914 (in silver/gold)
2.1Supply and demand for monetary gold in a small open economy
2.2World gold stock and western real output growth rates, 1807–1919
2.5The initial impact of an increase in the demand to hold monetary gold is to raise the purchasing power of gold, expand mine output, and diminish industrial use
2.6The long-run impact of an increase in the demand to hold monetary gold is to increase the stock of monetary gold but not the purchasing power of gold
2.7An economy with steady growth in the monetary demand for gold matched by equal growth in stock of gold
2.8Alternative representation of an economy with steady growth in the monetary demand for gold matched by equal growth in stock of gold
2.9Faster growth in real output initially diminishes the monetary gold stock per unit of output, raises the ppg, and expands monetary gold production
2.10Following a positive shock to the economy’s real growth rate, the induced faster growth of the monetary gold stock returns ppg to its steady-state equilibrium value
2.11The development of bank-issued money (or alternatively the exit of some countries from the gold standard) reduces the demand for monetary gold relative to real output, lowering the ppg and shrinking the stock of monetary gold per unit of real output
2.12Reduced demand for monetary gold per unit of real output is ultimately met by shrinkage in the stock of monetary gold per unit of output, stabilizing long-run ppg
2.13A major goldfield discovery shifts the flow supply curve to the right, permanently enlarging the stock supply of gold per unit of output and lowering the ppg
2.14Progressive depletion of gold mines raises ppg over time by reducing the growth of monetary stock supply relative to real output
4.1Doubling the nominal fiat money supply halves the equilibrium purchasing power of money
5.1Nominal quantity of Bitcoin and its proportional expansion rate over time
5.2Supply and demand for Bitcoin determine the market-clearing price
5.3Variations in BTC demand cause variations in purchasing power, with no response in quantity supplied
5.4As the quantity of BTC grows, shifting the supply curve rightward, the price per unit falls proportionally, other things equal
6.1In response to a given shift in the demand for money, the purchasing power of Bitcoin under a Bitcoin standard varies more in the short run than the purchasing power of gold under a gold standard
6.2In response to a given shift in the demand for money, the purchasing power of Bitcoin under a Bitcoin standard varies much more in the long run than in the purchasing power of gold under a gold standard
