Inflation: Proceedings of a Conference held by the International Economic Association

513 Pages·1962·52.63 MB·English

by  Professor Douglas C. Hague (eds.)

INTERNATIONAL ECONOMIC ASSOCIATION
CONFERENCE VOLUMES, Numbers 1-50
NUMBER 9
Inflation
INFLATION
Proceedings of a Conference held by
the International Economic Association
EDITED BY
DOUGLAS HAGUE
M
. .
S
TOCKTON
P R E S S
© International Economic Association 1962
Softcover reprint of the hardcover 1st edition 1962
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First published 1962
This 50-volume set reprinted 1986 jointly by
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DOI 10.1007/978-1-349-08455-5
This volume ISBN 978-0-333-40637-3
CONTENTS
PAGB
LIST OF PARTICIPANTS IX
ERIK LINDAHL XI
EDITOR'S INTRODUCTION xiii
PART I
THE GENERAL SETTING
CHAP.
1. A GENERAL SuRVEY OF PosT-WAR INFLATION.
Emile James 3
2. INTERNAL FACTORS CAUSING AND PROPAGATING
INFLATION : I. Gottfried Haberler 19
3. INTERNAL FACTORS CAUSING AND PROPAGATING
INFLATION : II. J. C. R. Dow 37
4. INTERNAL FACTORS CAUSING AND PROPAGATING
INFLATION : III. G. Ugo Papi 54
5. THE EFFECTS OF PosT-WAR INFLATION ON BusiNESS
CYCLES AND EcoNOMIC GROWTH. Howard S. Ellis 63
6. THE EFFECTS OF PosT-WAR INFLATION ON THE
DISTRIBUTION OF INCOME. Jiirg Niehans 73
PART II
MONETARY NORMS
7. THE PROBLEM OF FIXING A NoRM FOR THE VALUE oF
MONEY. Erik Lindahl 95
8. SHOULD WE HAVE INDEX LOANS ? Guy Arvidsson 112
PART Ill
MONETARY AND FISCAL POLICIES
FOR INFLATION
9. THE Co-oRDINATION oF PouciEs FOR FuLL EMPLOY-
MENT AND PRICE STABILITY. James S. Duesenberry 129
v
Contents
CHAP. PAGE
10. MoNETARY PoLICY-AS A \VEAPON AGAINST
INFLATION. Erik Lundberg 147
11. THE CoNTROL oF INFLATION BY MoNETARY AND
164
CREDIT PoLICY. Jacques Rueff
12. FISCAL PoLICY AS A WEAPON TO CoNTROL INFLATION.
Fritz Neumark 185
13. THE RELATIVE RESPONSIBILITIES OF GOVERNMENTS AND
CENTRAL BANKS IN CONTROLLING AGGREGATE DEMAND.
M. W. Holtrop 198
PART IV
INFLATION AND THE TRADE UNIONS
14. LABOUR UNION PowER AND CosT INFLATION. Edward
H. Chamberlin 221
15. WAGES AND INFLATION. Jorgen Pedersen 233
16. WAGE INFLATION IN PosT-WAR FINLAND. Bruno
Suviranta 248
PART V
INTERNATIONAL ASPECTS OF INFLATION
17. THE INTERACTION OF INFLATION IN DIFFERENT
267
CouNTRIES. Paolo Baffi
18. THE RoLE oF THE INTERNATIONAL MoNETARY FuND IN
PROMOTING PRICE STABILITY. Walter R. Gardner 285
19. THE ROLE OF INTERNATIONAL ORGANIZATIONS IN
PROMOTING PRICE STABILITY. Hans Moller 293
20. IMPROVING WoRLD LIQUIDITY. Robert Triffin 304
PART VI
INFLATION IN UNDER-DEVELOPED AND
SOCIALIST COUNTRIES
21. THE APPLICABILITY OF 'ORTHODOX MONETARY REMEDIES'
TO DEVELOPED AND UNDER-DEVELOPED CouNTRIES.
Arthur W. Marget 317
Vl
Contents
CHAP. PAGE
22. PROBLEMS OF INFLATION UNDER SOCIALISM. Bronislaw
Oyrzanowski 332
23. INFLATION IN LATIN AMERICA. Eugenio Gudin 342
PART VII
REPORT ON THE PROCEEDINGS
SUMMARY RECORD OF THE DEBATE. Douglas C. Hague 361
INDEX 507
vii
LIST OF PARTICIPANTS
Professor S. M. Akhtar, University of the Punjab, Lahore, Pakistan.
Professor M. B. Amzalak, University of Lisbon, Portugal.
Professor G. Arvidsson, University of Lund, Sweden.
Dr. Paolo Baffi, Banca d' Italia, Rome, Italy.
Professor Louis Baudin, University of Paris, France.
Professor Alfred Bonne, The Hebrew University, Jerusalem, Israel.
Professor George Britnell, University of Saskatchewan, Saskatoon, Canada.
Professor E. H. Chamberlin, Harvard University, Cambridge, Mass.,
U.S.A.
Dr. Milutin Cirovic, University of Belgrade, Yugoslavia.
Professor Dimitrios Delivanis, University of Salonika, Greece.
Mr. J. C. R. Dow, National Institute of Economic and Social Research,
London, England.
Professor J. S. Duesenberry, Harvard University, Cambridge, Mass.,
U.S.A.
Professor H. S. Ellis, University of California, Berkeley, California, U.S.A.
Mr. W. R. Gardner, International Monetary Fund, Washington, U.S.A.
Professor Eugenio Gudin, University of Brazil, Rio de Janeiro, Brazil.
Professor Gottfried Haberler, Harvard University, Cambridge, Mass.,
U.S.A.
Professor D. C. Hague, University of Sheffield, England.
Mr. Demetrius Halikias, Bank of Greece, Athens.
Professor W. G. Hoffmann, University of Munster, Germany.
Dr. M. W. Holtrop, Bank of the Netherlands, Amsterdam.
Mr. David Horowitz, Bank of Israel, Jerusalem.
Professor Emile James, University of Paris, France.
Professor W. A. Johr, University of St. Gallen, Switzerland.
Mr. G. A. Kessler, Bank of the Netherlands, Amsterdam.
Professor Jaroslav Langr, Economic Institute, Czechoslovak Academy
of Sciences.
Professor Erik Lindahl, University of Uppsala, Sweden.
Professor Edward Lipinski, University of Warsaw, Poland.
Professor Erik Lundberg, University of Stockholm, Sweden.
Professor Alexander Mahr, University of Vienna, Austria.
Dr. A. W. Marget, Federal Reserve Board, Washington, U.S.A.
I.-A2 IX
List of Participants
Professor Hans Moller, University of Munich, Germany.
Professor Robert Mosse, University of Grenoble, France.
Professor Otto Muller, University of Copenhagen, Denmark.
Professor lchiro Nakayama, Hitotsubashi University, Tokyo, Japan.
Professor Zacharia Nasr, University of Cairo, Egypt.
Professor Fritz Neumark, University of Frankfurt, Germany.
Professor Jurg Niehans, University of Zurich, Switzerland.
Dr. A. W. Overwater, Joint Director, Koudijs' Voederfabrieken, Nether-
lands.
Professor B. Oyrzanowski, University of Cracow, Poland.
Professor G. Ugo Papi, University of Rome, Italy.
Professor Je~rgen Pedersen, University of Aarhus, Denmark.
Sir Dennis Robertson, Trinity College, Cambridge, England.
Professor E. A. G. Robinson, Sidney Sussex College, Cambridge, England.
M. Jacques Rueff, Judge in the Court of Justice of the European Com-
munities.
Professor N. V. Sovani, Gokhale Institute of Politics and Economics,
Poona, India.
Professor Bruno Suviranta, University of Helsinki, Finland.
Professor Robert Triffin, Yale University, New Haven, Connecticut,
U.S.A.
Professor Johan Vogt, University of Oslo, Norway.
X
ERIK LINDAHL
THE Conference at Elsinore, the proceedings of which are recorded
in this volume, represents a last testimony to the great contribution
that Erik Lindahl made to the work and development of the Inter
national Economic Association. He served on its Executive Com
mittee from 1953 and was President from 1956 to 1959. The
Conference on Inflation held at Elsinore, represented his choice of
subject. It was he who, after brief discussion with some of his
colleagues on the Executive Committee, planned its agenda and
content and persuaded the writers of papers to comply with his
concept of their tasks. As the senior representative of Scandinavia
on the occasion when the International Economic Association first
met in a Scandinavian country, it was he who played the chief
part in choosing Elsinore for our meeting-place and in organizing
the hospitable welcome which we received. As both President and
host, a specially heavy burden fell on him throughout the Confer
ence. Yet he presided with all his customary patience, good temper
and wisdom over the proceedings of the Council of the Association
and subsequently played a major part in the discussions that took
place both in the Conference itself and through meal-times and
intervals.
We knew that he had been a gravely sick man through the
preceding months. We realized in some degree what the Confer
ence was taking out of him. But there were none, I think, who did
not feel a grave personal shock when, within a few months, he was
dead. The absence of his wisdom, his scholarship, his patient
determination to find the best solution to every problem has been a
very grievous loss to the International Economic Association, of
which those of us who have had the responsibility of succeeding to
his tasks have become ever increasingly aware.
This is not the place in which to attempt to assess Erik Lindahl's
wider contributions to economics generally and to that great Swedish
tradition which has contributed so much to it both as an academic
subject and, through the distinguished Swedish economists who have
played so great a part in the United Nations, to the welfare of the
world. For all of us who knew him, Erik Lindahl represented the
epitome of an academic scholar - thorough, patient, cautious, but
always humane and sensitive.
Yet in the Elsinore Conference we saw another side also of
Xl