The book includes a prescient chapter on inflation, distinguishing between (too much money chasing too few goods) and cost‑push (wage or raw material increases driving up prices). Kurihara argues that monetary restraint is the correct remedy for demand‑pull inflation, but it may be useless or even counterproductive against cost‑push inflation. Raising interest rates to fight union‑driven wage inflation only deepens unemployment without stopping price rises. In such cases, he advocates incomes policies (wage‑price guidelines) or direct controls as temporary measures—a controversial position then and now.
Kurihara explains that an economy can settle at an equilibrium point that is far below full employment. This was a radical departure from classical "Say’s Law" (supply creates its own demand). By elucidating this, Kurihara provided the intellectual ammunition for government intervention: if the private sector does not generate enough demand, the public sector must step in to fill the gap. Monetary Theory And Public Policy Kenneth Kurihara.pdf
Published in the post-Keynesian era, Kurihara’s work remains a cornerstone for those who wish to understand how money flows through an economy and how central banks (or treasuries) should react to instability. This article explores the core themes of Kurihara’s masterpiece, why it remains relevant, and where the intellectual value of the PDF lies for contemporary economists. The book includes a prescient chapter on inflation,
He poses a vital policy question: If we stimulate investment through low interest rates, are we sacrificing current consumption only to create overcapacity and future depression? His answer forms the basis of modern growth theory. In such cases, he advocates incomes policies (wage‑price
If you are looking for legitimate access to Monetary Theory and Public Policy , check your university library’s digital subscription (e.g., ProQuest or HathiTrust). Many out-of-copyright editions are available for free, legal download through academic portals. Happy researching.
Though primarily focused on a closed economy, Kurihara devotes two chapters to international monetary issues. Under the Bretton Woods system of pegged but adjustable exchange rates, he examines: