James Tobin discusses Fisher's compensated dollar plan and Robert Hall's proposal for controlling the price level.
Fisher's idea was quite simple. It applies to a commodity, or "representative," currency as distinguished from fiat money. In Fisher's day, paper money and token coin were the predominant means of payment. The public exchanged them for real commodities, in other words, for goods and services for consumption or for the making of consumption goods. The value of currency in ...