ABSTRACT

To start with it must be observed that the inter-war period which I am about to cover is so rich in major economic events and incidents that, even after cutting out a good deal of interesting material, I can only give here a few sentences, or at the most a few paragraphs, to each of the items under review. In the second place, I would like to point out that the inter-war period was dominated by defl ation and its ill effects. But if defl ation appears as the villain in the inter-war period, this is not to say that infl ation is never a villain and has not been a villain in the post-war period. The thing to be remembered in this matter is that enough – and not more than enough – additional money should be injected into circulation to utilize a surplus of goods and services that may be made available by excessive saving.