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...

The 1920s saw the Fed reject a state-of-the-art quantity theory framework for a flawed real bills one. The quantity theory framework featured the money stock, price level, and real interest rates as policy guides. By contrast, the real bills framework featured nominal interest rates, volume of...

The 1920s and 1930s saw the Fed reject a state-of-the-art empirical policy framework for a logically defective one. Consisting of a quantity theoretic analysis of the business cycle, the former framework featured the money stock, price level, and real interest rates as policy indicators. By...