| Abstract: | The paper contains a survey and analysis of two debates between Wicksell and a number of Swedish economists concerning the cumulative process. The debates illustrate various problems with the analytical formulation of the cumulative process and how these problems were dealt with by the participants. Inter alia the institutional framework (inside versus outside money), excess demand or interest gap as an engine of inflation, the natural and the normal rate of interest, the relationship between the real and the monetary parts of the economy and price expectations are discussed in the paper. |
