Note 60 — Chapter IV
Reading edition
The price-level is a weighted average. These elements dominate it. Cf. our discussion, in the chapter on the "Volume of Money and the Volume of Trade," infra, of the elements entering into trade. We shall make use of the capitalization theory at various points in our discussion of general prices. Cf. the chapter on "The Passiveness of Prices," where it is shown that the capitalization theory and the quantity theory are irreconcilable.