ABSTRACT
Professor Hague said that the conference left him with a number of disappointments. As Professor Patinkin had pointed out, the conference had not resolved the biggest issue of all, which was why inflation was currently so severe. In the past, serious inflation had usually been linked to war. It was true that there had recently been a ‘small' war in Vietnam, but Korea had only been a ‘small' war too. Yet the Korean inflation had subsided quite quickly. In the inflation of 1973 and 1974 the effect on expectations, particularly in commodity markets, seemed to have been very big. And participants had expressed fears that another commodity boom might be on its way.
