The Role of Money in the Inflation Analysis

  • Helmut Frisch
Part of the International Economic Association Series book series (IEA)


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. (1)

    inflation is a monetary phenomenon for the explanation of which the quantity of money is fundamental

  2. (2)

    the ruling Keynesian theory has failed in the field of inflation problems.



Real Wage Government Expenditure Money Supply Market Rate Government Debt 
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Copyright information

© International Economic Association 1977

Authors and Affiliations

  • Helmut Frisch
    • 1
  1. 1.Technical University of ViennaAustria

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