Traditionally, central banks seeking to stabilize general prices have followed policies similar to those advocated by Knut Wicksell: when prices are higher that desired, raise interest rates to exert downward pressure on prices, and conversely. Despite the historical predominance of interest...

Gustav Cassel (1866-1945) deserves credit for establishing quantity-theoretic foundations for Knut Wicksell's (1851-1926) cashless-society version of the cumulative inflationary process and the price-stabilizing policy rule. Wicksell's ambiguities and inconsistencies regarding those foundations...

Fisher's advice to the policymakers: Adjust the money stock to correct price-level deviations from target. He neglected to say whether money should respond (1) to the gap between actual and target prices, (2) to the gap's rate of change, (3) to the gap's cumulative value over time, or (4) to...