ABSTRACT
In the discussion in the previous chapter of certain relations, wholly or partly definitional in character, and holding good in a situation where a monetary pressure of inflation exists, we made use of that interpretation of the concept of monetary pressure of inflation which is a consequence of putting demand = planned purchases, and supply = expected sales. In this way, excess demand became equivalent to excess of planned purchases over expected sales, and the existence of a monetary pressure of inflation became equivalent to the case of the ex ante commodity-gap and/or ex ante factor-gap being positive, and neither being negative. The analysis was concentrated on the relation between the excess demand in the commodity and factor markets, which is characteristic of monetary pressure of inflation, and the saving-investment relation, where the line of thought of the Stockholm School was used, with certain deviations arising from the inflation problem itself.
