Monetae cudendae ratio

http://en.wikipedia.org/wiki/Money_velocity

Principles

The theory above is based on the following hypotheses:

1. The source of inflation is fundamentally derived from the growth rate of the money supply.
2. The supply of money is exogenous.
3. The demand for money, as reflected in its velocity, is a stable function of nominal income, interest rates, and so forth.
4. The mechanism for injecting money into the economy is not that important in the long run.
5. The real interest rate is determined by non-monetary factors: (productivity of capital, time preference).                    http://en.wikipedia.org/wiki/Quantity_theory_of_money

In the paper, Copernicus postulated the principle that "bad money drives out good",^[4] which later came to be referred to as Gresham's Law after a later describer, Sir Thomas Gresham. This phenomenon had been noted earlier by Nicole Oresme, but Copernicus rediscovered it independently. Gresham's Law is still known in Poland and Central and Eastern Europe as Kopernik's Law.^[5]
In the same work, Copernicus also formulated an early version of the quantity theory of money,^[2] or the relation between a stock of money, its velocity, its price level, and the output of an economy. Like many later classical economists of the 18th and 19th centuries, he focused on the connection between increased money supply and inflation.^[6]
Monetae cudendae ratio also draws a distinction between the use value and exchange value of commodities, anticipating by some 250 years the use of these concepts by Adam Smith—although it, too, had antecedents in earlier writers, including Aristotle.                         http://en.wikipedia.org/wiki/Monetae_cudendae_ratio