Scandinavian Working Papers in Economics

Research Papers in Economics,
Stockholm University, Department of Economics

No 2000:14: Analytical Foundations of Erik Lindahl's Monetary Analysis, 1924-30

Claes-Henric Siven
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Claes-Henric Siven: Dept. of Economics, Stockholm University, Postal: Department of Economics, Stockholm University, S-106 91 Stockholm, Sweden

Abstract: An overview is first given of Erik Lindahl's works during the 1920s: Aims of Monetary Policy, "The Place of Capital in the Theory of Price", "On the Relationship between the Quantity of Money and the Price Level" and Means of Monetary Policy. After that the origin of ideas and Lindahl's analytical contributions to monetary analysis during the 1920s is discussed from the following perspectives: the formualtion of a norm for monetary policy, type of equilibrium analysis, fundamental equations and microeconomic foundations, capital theory and intertemporal analysis, assumptions about the monetary system, the stability problem and the uniqueness of the price level.

Keywords: Economic history; Monetary Theory; Wicksell; Lindahl

JEL-codes: B22; E40

41 pages, December 15, 2000

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