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Inflation Policy and Unemployment Theory: The Cost-Benefit Approach to Monetary Planning
Paperback
AccountingEconomicsInvesting & Finance
ISBN13: 9780393330571
Publisher: W W Norton & Co
Published: Jun 6 1972
Pages: 352
Weight: 0.84
Height: 0.79 Width: 5.00 Depth: 8.00
Language: English
A major advance toward understanding the forces that lead to inflation and unemployment, this study takes a cost-benefit approach to monetary planning. Professor Phelps views a reduction of inflation by monetary means as a social investment and argues that such an investment must be subject to cost-benefit tests. By extending his analysis into questions of efficiency and resource allocation, he integrates the modern microeconomic theory of unemployment with the theory of optimal inflation. Another element of the analysis, the doctrine of optimum liquidity, is reassessed and found to require important revisions.
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