Inflation and the Theory of Money"Martin Bronfenbrenner in the Journal of Finance had this to say when the book was first released "A thoughtful, scholarly, and systematic treatise on the economics of inflation. If this reviewer were asked to hang a course on inflation theory upon one single text, it would almost certainly be this one."The principal concern of this book is to set out the elements that enter into problems of analyzing inflation. This detailed, readable review of contemporary theory on the problems of inflation fills an important gap in the literature on macro-economics that: 1) assesses the implications of inflationary processes for economic policy; 2) synthesizes a general framework within which to illustrate inflationary processes; 3) reconciles the approaches of "demand inflation" and "cost inflation"; and 4) analyzes the determination and behavior of the general price level in an exchange economy. The first part of the book reviews neo-classical and "Keynesian" type models of the closed macro-economy, analyzes determination of the general price level, and introduces a restatement of conventional employment theory with emphasis on the general price level. The second part considers the problems of price and wage determinations and the demand for money in more detail, synthesizing the analyses into a model of the macro-economy and discussing the implications of this model and the preceding analysis for economic policy. Describing alternative approaches to the theory of inflation, each of which has resulted in partial theories, the book avoids fragmentary explanations by setting the entire discussion in the context of a macro-economic general equilibrium framework."--Provided by publisher. |
Contents
| 13 | |
Prices and the Laws of Exchange Introduction The | 26 |
Employment and the Price Level Introduction | 48 |
The Keynesian Theory of Inflation Introduction | 62 |
PART II | 73 |
Alternative Approaches to the Theory of Inflation | 81 |
Business Behaviour and the Price Level Introduc | 89 |
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Common terms and phrases
adjustment aggregate aggregate demand analysis assets bank deposits behaviour capital changes Chapter competitive consumption curve debt defined demand for money depend determined discussion earnings effect equilibrium equities excess demand exchange economy existence expected profits expenditure firm full employment given Government hyper-inflation important income velocity incomes policy industry inflation inflationary interest rates investment J. R. Hicks Keynesian level of money level of profits level of real level of unemployment liquidity marginal means of payment ment money income money supply neo-classical nominal money non-bank intermediaries organized labour output personal sector portfolio price increase price level problem productivity proportion Quantity Theory rate of growth rate of interest real balances real income relation relative result role shift short period simple spending units stability stock of money store of value supply of money United Kingdom velocity of money wage and price wage drift wage increase wealth wealth effect worth