In early modern England, coin supply increased a lot without prices responding proportionally:
This contradicts the Quantity Theory of Money, according to which the changes should move together. If the money supply doubles, prices should double too, because the quantity theory assumes income and velocity to be constant (at least in the long run).
Here I show just coin supply, so a very narrow measure of the money supply. Broader money supply must have increased even more, as forms of paper money and credit developed at this time. This makes things look even worse for the quantity theory.
While the Quantity Theory looks bad, there is no contradiction with the equation of exchange, which simply states that nominal GDP equals velocity times money. Nor could there be, as the equation of exchange just an accounting identity.
In my forthcoming Financial History Review paper, “Money and Modernization in Early Modern England”, I explain what was going on. I argue that monetization helped support economic growth and structural change. If real growth happens, money can increase without a response of prices.