The Monetary Approach to Inflation and the Balance of Payments: Theoretical and Empirical Contributions at the Leuven Conference

2009-07-01T00:00:00Z (GMT) by Allan Meltzer

The problem of world inflation and the desire to compare our theories of inflation in open economies with the accumulating evidence prompted the sponsors to organize a conference on Bank Credit, Money and Inflation at the Katholieke Universiteit Leuven in September 1974. The papers and comments in this volume are the contributions of the conference and its principal work.

Most of the papers fall within the very broad framework known as the monetary approach to the balance of payments and inflation. The distinguishing characteristic of this approach is not a particular analytical structure or model but a set of general principles guiding research. Two principles appear to be generally and perhaps universally accepted by those who use the framework. Both are long-run propositions