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James Ahiakpor in his essay WICKSELL ON THE CLASSICAL THEORIES OF MONEY CREDIT INTEREST AND THE PRICE LEVEL PROGRESS OR RETROGRESSION started up the argument which was followed by the number of replies His treatment of Wicksell place in the history of monetary economics is kind of biased as we shall see further As he states in the Abstract to his essay Knut Wicksell occupies a significant place in the history of monetary economics as the developer of the cumulative process by which deviations between the market and natural rates of interest cause the price level to change persistently A more accurate version of the same argument is a part of classical monetary analysis but there the process originates from a change in base money or central bank credit while Wicksells version may be initiated by banks capriciously setting their lending rates Wicksells version arises from his difficulties in correctly interpreting the classical quantity theory of money and interest rate determination from Hume down to Marshall but has not been so noted in the literature As Ahiakpor points out further in his introduction Indeed the cumulative process argument typically attributed to Wicksell is part and parcel of classical monetary analysisn2 as entailed in their forced-saving doctrine except that the classical version is not as open-ended as Wicksells The tendency of commentators not to contrast Wicksells monetary analysis directly with that of the classics appears to have obscured recognition of this fact Ahiakpors critique of Wicksell is not so much consistent with the views of the other writers who replied to his essay Their views differ from highly opposed to just opposed and to simply neutral that points out that there are some goods and bads to Wicksells theory Thomas Humphrey starts his reply with those words It takes a bold person to challenge the intellectual achievements of a giant figure in the history of economic thought The challenger runs the
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