Gold and the General Price Level
pRACTICALLY all of the economists who have published serious discussions of the relation between gold or prosperity and prices have specifically stated that the general price level is not identical with the average of wholesale prices, still less with any single index of wholesale prices.2 Having made this admission they have proceeded to argue to conclusions that can be justified only on the assumption that the general price level is adequately represented by the Sauerbeck or some other wholesale index.