ABSTRACT
It is of no particular interest to describe Lindahl's analysis of this problem, except to say that his negative conclusion led him to put forward his own method. However, this method is only stated in vague terms and must be considered more as a statement of his intentions and a discarding of the quantity theory approach;
"When elucidating the present causal connection [between M and P] one has to go down to the deeper lying factors, which could be studied most appropriately by starting from the conducted monetary policy. The general theory for the changes in the price level must therefore be founded on other lines than those which the quantity theoreticians have followed. For this theory the simultaneous changes in the money supply and the velocity of money appear as being of a more subordinate importance, even if by themselves they could offer a lot of interest" (ibid., p.l8).
