A study in the theory of open inflation

I. THE BACKGROUND OF THE STUDY 9
1. The Nature of Economic Science 9
2. A Brief Survey of the Theory of Prices 12
3. Some Definitions 24
4. The Purpose of the Present Study 32

II. THE BASIC MODEL 38
1. Static versus Dynamic Analysis 38
2. The Period Concept 40
3. The One-Period Model 43

III. THE PRICING PROCESS 50
1. Excess Demand and Price Changes 50
2. Spontaneous Prices 58
3. The Price Equations 59
4. Expectations 66

IV. THE DEMAND EQUATIONS 72
1. The Analysis of Stocks in Economic Theory 72
2. The Concept of Assets 73
3. Changes in Asset Holdings 74
4. Problems in Asset Analysis 77
5. The Demand Function of Households: the Consumption Function 79
6. The Demand Function of Households: the Asset Demand Function 88
7. The Demand Function of Firms: the Investment Function 95
8. The Demand Function of Firms: the Demand for Labour 102

V. THE ANALYSIS OF THE INFLATIONARY PROCESS 105
1. The Characteristics of the Model 105
2. Spontaneous Changes in Prices and Wages 114
3. The Distribution of Income 121
4. The Monetary Features of Inflation 127

VI. SUMMARY 133

BIBLIOGRAPHY 138
APPENDIX: The Symbols Used 143