ABSTRACT
Although I very much fear that the majority of Ekonomisk Tidskrift’s readers lack the requisite interest in protracted theoretical disputes, I nevertheless beg to make a brief response to a few of the criticisms set forth by Professor Davidson in the previous issue [1908] with regard to my theory or hypothesis about the regulation of prices by means of the money rate of interest. For it seems to me as if Prof. Davidson has in part misunderstood what I mean, and since a similar misunderstanding has found expression in a recently published work by a younger Swedish economist,1 I am obliged to assume that the source of the error is some obscurity on my part, which I should very much like to clear up. And, indeed, I find that in my previous response (1908, no. 4) I did not express myself with sufficient rigour throughout-the subject is not terribly easy, and if one fails to keep all its details in mind at all times, one runs a certain risk of losing the logical thread.
