ABSTRACT

The contributions of this collection can be put in the perspective of the ups and downs of integrating inflation theory in general equilibrium over its long history. Wicksell’s (1898) Interest and Prices focused on the determination of the real interest rate in capital markets. Patinkin (1989) determined in his Money, Interest and Prices to show how the monetary side enters into the general equilibrium setting. And Woodford (2003) tries to return the theory of monetary policy to one without money at all, calling his book Interest and Prices. 1