ABSTRACT
The monetarist model to be presented in this chapter represents an approach whose origins reach back to the writings of D. Hume in the eighteenth century. The approach was revived and refined during the 1950s and 1960s in the writings of the IMF (notably by Polak and Prais), R. Mundell, H. Johnson, J. Frenkel and R. Dornbusch. 1
