The New Palgrave Dictionary of Economics

2018 Edition
| Editors: Macmillan Publishers Ltd

Cumulative Processes

  • Björn Hansson
Reference work entry


The first well-known analysis of cumulative processes was developed by Knut Wicksell in his book Interest and Prices, which was published in 1898. It grew out of an attempt to reformulate the quantity theory of money. In this context the cumulative process is intimately connected with the development of the saving–investment approach, which is one mechanism through which a change in the quantity of money can influence prices and quantities.

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© Macmillan Publishers Ltd. 2018

Authors and Affiliations

  • Björn Hansson
    • 1
  1. 1.