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- Title
THE BEHAVIOR OF MONEY NATIONAL INCOME UNDER INFLATIONARY CONDITIONS.
- Authors
Smithies, A.
- Abstract
The article focuses on models to examine behavior of money national income under inflationary conditions in Great Britain. The writer on inflation is fortunate in that his subject is generally well understood by economists, since its dramatic empirical manifestations leave little room for dispute as to the general conclusions to which theoretical analysis should lead. Although the author has no illusions about the possibilities of accurate economic prediction, the author do believe that models of the type constructed in this paper can at least provide a surer guide to the implications of an inflationary policy than mere unsystematic speculation. As regards policy, the author fails to see that an inflation that does not approach an upper limit has any constructive purpose. It must be stopped, and the difficulty of stopping it increases as the inflation continues. On the other hand, an inflation that has an upper limit that is considered to be socially tolerable may be considered a constructive means of implementing a policy designed to increase the real burden of a progressive income tax or to impose a levy on wage-earners or both.
- Subjects
UNITED Kingdom; NATIONAL income; PRICE inflation; ECONOMISTS; ECONOMIC forecasting; ECONOMIC indicators
- Publication
Quarterly Journal of Economics, 1942, Vol 57, Issue 1, p113
- ISSN
0033-5533
- Publication type
Article
- DOI
10.2307/1881815