A Note on the Theory of the Inflationary Process
In recent years there have been at least two important contributions to our tools for the analysis of inflation. It is the aim of this paper to integrate these approaches with a simple dynamical version of linear general equilibrium theory. The resulting system is capable of empirical specification along the lines of Professor Leontief’s work,1 and contributes essential features lacking both in traditional quantity theory and in modern macro-dynamic models.
KeywordsPrice Level Full Employment Price Rise Money Income Marginal Propensity
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