Now the monetary prices of the various commodities are constantly changing, and in somewhat different degrees, but on the average there may be a general trend upward or downward, and this is called a change in the general scale (or level) of prices, as contrasted with changes in the values of any two commodities in terms of each other.

The general price level will be more fully discussed below (Chapter 6, section 3) in connection with the method of measuring by index numbers its changes.

This brief explanation may, perhaps, be enough for our present purpose.

Our question now is: What is the effect of changes in the quantity of money (considered apart from chance accompanying changes) upon the general level of prices?
Sec.9.

#Effect of increasing gold production#.