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Fisherian and Wicksellian price-stabilization models in the history of monetary thought

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  • Thomas M. Humphrey

Abstract

The policy models of Irving Fisher and Knut Wicksell posit rules by which central banks can stabilize general prices at a fixed target level over time. Wicksells model, however, requires some adjustment before it can deliver price stability.

Suggested Citation

  • Thomas M. Humphrey, 1990. "Fisherian and Wicksellian price-stabilization models in the history of monetary thought," Economic Review, Federal Reserve Bank of Richmond, issue May, pages 3-12.
    • Handle: RePEc:fip:fedrer:y:1990:i:may:p:3-12:n:v.76.no.3
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    References listed on IDEAS

    as
    1. Cassel, Gustav, 1927. "The Rate of Interest, The Bank Rate, and the Stabilization of Prices," History of Economic Thought Articles, McMaster University Archive for the History of Economic Thought, vol. 42, pages 511-529.
    2. Jonung, Lars, 1979. "Knut wicksell's norm of price stabilization and Swedish monetary policy in the 1930's," Journal of Monetary Economics, Elsevier, vol. 5(4), pages 459-496, October.
    3. Wicksell, Knut, 1907. "The Influence of the Rate of Interest on Prices," History of Economic Thought Articles, McMaster University Archive for the History of Economic Thought, vol. 17, pages 213-220.
    4. A. M. C. Waterman, 1988. "Hume, Malthus, and the Stability of Equilibrium," History of Political Economy, Duke University Press, vol. 20(1), pages 85-94, Spring.
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    Cited by:

    1. Robert L. Hetzel, 2016. "The Rise and Fall of the Quantity Theory in Nineteenth Century Britain: Implications for Early Fed Thinking," Economic Quarterly, Federal Reserve Bank of Richmond, issue Q4, pages 281-320.
    2. Tavlas, George S., 2021. "A Reconsideration Of The Doctrinal Foundations Of Monetary Policy Rules: Fisher Versus Chicago," Journal of the History of Economic Thought, Cambridge University Press, vol. 43(1), pages 55-82, March.
    3. Robert L. Hetzel, 2008. "What is the monetary standard, or, how did the Volcker-Greenspan FOMCs tame inflation?," Economic Quarterly, Federal Reserve Bank of Richmond, vol. 94(Spr), pages 147-171.

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    Keywords

    Inflation (Finance); Monetary policy;

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