"The reader may benefit from my explanation of the key turning points in my own thinking, during the six years of research. Ever since my graduate studies at Yale, the quest for a better understanding of the process of economic growth has been an important part of my research. Much of the work...

A strategic mechanism of price adjustment is introduced to explain inflations in the U.S. during 1909-1974. The mechanism follows from our theory that when the profit rate is above a normal-target rate, competitive forces operate to lower prices while if the profit rate is below the target a...