Money and Inflation: Some International Comparisons
It is defensible that a capital market symposium should include a paper that says nothing about capital markets per se, focusing instead on the inflationary environment in which capital markets have been operating for a generation or more. Lenin is supposed to have expressed the view that debauchment of currency is the surest way of undermining the social order — a sentiment that has been echoed by John Kenneth Galbraith, among others.1 Neither Lenin nor Galbraith provided a detailed rationale for their hypothesis. One can surmise, however, that they may have had in mind the disruptive consequences of inflationary shocks on capital markets.
KeywordsMonetary Policy Central Bank International Comparison Federal Reserve Money Stock
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- 2.Thornton Wilder, The Bridge of San Luis Rey (New York: Boni, 1927).Google Scholar
- 3.A very incomplete listing of monetarist works on inflation would include the following various articles by Milton Friedman, collected in his An Economist’s Protest, 2nd ed. (Glen Ridge, N. J.: Horton, 1975)Google Scholar
- Milton Friedman, Dollars and Deficits (Englewood Cliffs, N.J.: Prentice-Hall, 1968)Google Scholar
- Milton Friedman, A Theoretical Framework for Monetary Analysis, National Bureau of Economic Research Occasional Paper 112 (New York: Columbia Univ. Press, 1971);Google Scholar
- Phillip Cagan, The Hydra-Headed Monster (Washington: American Enterprise Institute, 1974);Google Scholar
- Karl Brunner et al., ‘Fiscal and Monetary Policies in Moderate Inflation’, Journal of Money, Credit, and Banking, V(1), Part II (Feb. 1973);Google Scholar
- D. E. W. Laidler, ‘The Current Inflation: Explanations and Policies’, National Westminster Bank Quarterly Review (Nov. 1972)Google Scholar
- D. E. W. Laidler, ‘The 1974 Report of the President’s Council of Economic Advisors: A Critique of Past and Prospective Policies’, American Economic Review, LXIV(5) (Sept. 1974) 535–43Google Scholar
- Michael Parkin, ‘United Kingdom Inflation: The Policy Alternatives’, National Westminster Bank Quarterly Review (May 1974).Google Scholar
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- More recent contributions are examined in Michael J. Hamburger, ‘The Lag in the Effect of Monetary Policy: A Survey of Recent Literature’, in Monetary Aggregates and Monetary Policy (New York: Federal Reserve Bank of New York, 1974)Google Scholar
- Phillip Cagan and Anna J. Schwartz, ‘How Feasible is a Flexible Monetary Policy?’, in Richard T. Selden (ed.), Capitalism and Freedom: Problems and Prospects (Charlottesville: Virginia Univ. Press, 1975).Google Scholar