Abstract
In this paper I propose to discuss the role of money in a process of inflation, not by analysing empirical data but rather by discussing the more important contributions of the so called ‘monetarists’. I shall be dealing primarily with the recent contributions by Friedman [14] to [20], Allais [1], Brunner and Meltzer [6] to [11], Stein [33] and [34] and Laidler [24]. As the monetarists are not a homogeneous group, it is not easy to analyse their models so as to get precise information about the multiple role of the quantity of money and its rate of change in relation to the inflationary process. We find agreement only with respect to two assertions
-
(1)
inflation is a monetary phenomenon for the explanation of which the quantity of money is fundamental
-
(2)
the ruling Keynesian theory has failed in the field of inflation problems.
Edittorial note: This paper has been considerably revised since it was presented and discissed by the conference.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
References
M. Allais, ‘Forgetfulness and Interest’, JMCB (1972).
M. Allais, ‘The Psychological Rate of Interest’, JMCB (1974).
L. C. Anderson and K. M. Carlson, ‘A Monetarist Model for Economic Stabilisation’, Federal Reserve Banks, St. Louis (1970).
K. Brunner, ‘The Monetarist Revolution in Monetary Theory’, Weltwirtschaftliches Archiv, Vol. 105 (1970).
K. Brunner, ‘A Survey of Selected Issues in Monetary Theory’, Schweizer Zeitschrift für Volkswirtschaft und Statistik.(1971).
K. Brunner and A. Meltzer, ‘Friedman’s Monetary Theory’, in M. Friedman’s Monetary Framework, p. 63 – 89 (1974).
K. Brunner and A. Meltzer, ‘Money, Debt and Economic Activity’, Journal of Political Economy (197 2).
K. Brunner and A. Meltzer, ‘A Monetarist Framework for Aggregative Analysis’ Kredit und Kapital 1 (1972).
K. Brunner and A.?Meltzer, ‘Monetary and Fiscal Policy in Open, Interdependent Economies with Fixed Exchange Rates’, Paris-Dauphine Conference (1974).
K. Brunner and A. Meltzer, ‘An Aggregative Theory for a Closed Economy’, Conference on Monetary Economy, Brown University (1974).
K. Brunner and A. Meltzer, ‘Mr Hicks and the “Monetarists”,’ Economica(1973).
D. Fand, ‘A Monetarist Model of the Monetary Process’, JoF (1970).
S. Fischer, ‘Recent Developments in Monetary Theory’, American Economic Review (Papers and Proceedings, 1975).
M. Friedman, ‘A Theoretical Framework of Monetary Analysis’, Journal of Political Economy(1970).
M. Friedman ‘A Monetary Theory of Nominal Income’, Journal of Political Economy(1971).
M. Friedman, ‘The Role of Monetary Policy’, American Economic Review (1968), reprinted in M. Friedman (1969).
M. Friedman, The Optimum Quantity of Money and other Essays, London (1969).
M. Friedman, ‘The Monetary Studies of the National Bureau’, Annual Report of the National Bureau of Economic Research (1964).
M. Friedman, ‘The Lag in the Effect of Monetary Policy’, Journal of Political Economy(1961).
M. Friedman, ‘Comments on the Critics’, Journal of Political Economy(1972).
F. Hayek, Prices and Production, London (1932).
J. Hicks, Critical Essays in Monetary Theory (‘The Hayek Story’), (Oxford, 1967).
H. G. Johnson, Inflation and the Monetarist Controversy,(Amsterdam-London, 1972).
D. Laidler, ‘An Elementary Monetarist Model of Simultaneous Fluctuations in Prices and Output’, in H. Frisch, ed. Inflation in Small Countries (1976).
D. Levhari and D. Patinkin, ‘The Role of Money in a Simple Growth Model’, American Economic Review (1968).
F. Machlup, ‘Friedrich von Hayek’s Contribution to Economics’, The Swedish Journal of Economics(1974).
F. Modigliani anid A. Ando, ‘Impacts of Fiscal Actions on Aggregate Income and the Monetarist Controversy: Theory and Evidence’, Brown University (1974).
R. Mundell, Monetary Theory (Inflation, Interest and Growth in the World Economy) (Pacific Palisades, 1971).
D. Patinkin, Money, Interest and Prices, New York (1965).
D. Patinkin, ‘Friedman on the Quantity Theory of Money and Keynesian Economics’, Journal of Political Economy(1972).
D. Patinkin, ‘Money and Growth in a Keynesian Full-employment Model’, in Studies in Monetary Economics, (New York, 1972, ch. 10).
T. J. Sargent and N. Wallace, ‘“Rational” Expectations, the Optimal Monetary Instrument, and the Optimal Money Supply Rule’, Journal of Political Economy (1975).
M. Sidrauski, ‘Inflation and Economic Growth’, Journal of Political Economy (1967).
J. Stein, Money and Capacity Growth (New York, 1971).
J. Stein, ‘Unemployment, Inflation and Monetarism’, American Economic Review (1974).
J. Stein, ‘Inside the Monetarist Black Box’, Conference on Monetary Economics, (Brown University, 1974.)
J. Tobin, ‘Money and Economic Growth’, Econometrica(1965).
J. Tobin, ‘The Neutrality of Money in Growth Models: A Comment’, Economica (1967).
J. Tobin, ‘Money and Income: Post hoc ergo propter hoc’, Quarterly Journal of Economics (1970).
J. Tobin, ‘Friedman’s Theoretical Framework’, Journal of Political Economy (1972).
Author information
Authors and Affiliations
Editor information
Copyright information
© 1977 International Economic Association
About this chapter
Cite this chapter
Frisch, H. (1977). The Role of Money in the Inflation Analysis. In: Lundberg, E. (eds) Inflation Theory and Anti-Inflation Policy. International Economic Association Series. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-03260-0_4
Download citation
DOI: https://doi.org/10.1007/978-1-349-03260-0_4
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-1-349-03262-4
Online ISBN: 978-1-349-03260-0
eBook Packages: Palgrave Economics & Finance CollectionEconomics and Finance (R0)