Search Results
Journal Article
Classical deflation theory
Journal Article
Fisher and Wicksell on the quantity theory
Working Paper
Interest rates, expectations, and the Wicksellian policy rule
Prominent among older theories of inflation is the view that a rising price level stems from a divergence between two rates of interest.
Journal Article
Ricardo versus Wicksell on job losses and technological change
Journal Article
John Wheatley's theory of international monetary adjustment
Journal Article
Book review: Economic thinking in an age of shared prosperity
Review of Sylvia Nasar's "Grand pursuit: the story of economic genius," New York: Simon & Shuster, 2011.
Working Paper
Classical deflation theory
Classical economists David Hume, Pehr Niclas Christiernin, Henry Thornton, David Ricardo, Thomas Attwood, and Robert Torrens looked beyond the redistributive (creditor-debtor) effects of deflationary monetary contraction to its adverse effects on output and employment. They attributed these effects to price-wage stickiness; to rises in real debt, tax, and cost burdens; to cash hoarding in anticipation of future price falls; and to other determinants. Addressing deflation associated with post-war resumption of gold convertibility at the old mint par, they advocated policies ranging from ...
Working Paper
Fisher, Thorton and the analysis of the inflation premium
Virtually all references to the Fisher Effect assume that its appearance in nominal interest rates is a simultaneous result of borrower and lender effects. However, Irving Fisher, and Henry Thornton before him emphasized the activist role on the borrower (demand) side of the loan market. Their reasoning is extended here. Borrowers are seen increasing their demands for loans not because they necessarily anticipate inflation, but because the results of inflationary spending first appear on their income statements as higher profits. Ultimately lenders' loan supply schedules shift to the left as ...