ABSTRACT
Contrary to what is widely believed, the crucial result of the ‘Keynesian Revolution’ is the general acceptance of a factual assumption and, what is more, of an assumption which becomes true as a result of its being generally accepted. The Keynesian theory has become a formal apparatus which may or may not be more convenient to deal with the facts than classical monetary theory. Relative wages of the different groups are bound to change substantially in the course of economic development. A transition to more stable monetary conditions by gradually slowing down inflation is probably still possible. The long-term problem is how we are to stop the long-term and periodically accelerated inflationary trend which will again and again raise that problem.
