ERIK LINDAHL’S NORM FOR
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ERIK LINDAHL’S NORM FOR book
In 1924 Erik Lindahl published a book entitled Penningpolitikens mål (The Aims of Monetary Policy), hereafter Aims, and in 1930 a sequel Penningpolitikens medel (The Means of Monetary Policy), hereafter Means.1 The two books were conceived together and form a programme for monetary policy to which Lindahl would adhere throughout his life. The topic was not new in Sweden, with theoretical contributions having been made principally by Wicksell and Cassel long before the First World War. The monetary upheavals during and after the First World War incited a lively discussion in Sweden among leading economists such as Cassel, Wicksell, Heckscher and Davidson. Perhaps surprisingly, there is almost no reference to these events in either of the books though they must have inspired him. On the other hand, the treatment was in the form of a theoretical treatise.