During the thirties some economists opposed "Keynesian" full-employment policy in the name of antiinflation. Today we find some economists opposing, explicitly or implicitly, development policy for.fear of inflation. The opposition to both full employment and economic development through "inflationary" financing arouses the suspicion that the economic argument involved is a thinly disguised ideological attack on "the interventionists, the socialists, the communists, the nationalists, the protectionists, the bureaucrats, and the relatives of all of them".
1 There is some danger that "anti- inflation obstructionists" will mislead underdevelop- ed economies into letting price stability take precedence of economic development. The crucial theoretical question at issue is whether "development through inflation" is conducive to capital accumulation, as economists of underdeveloped economies claim hopefully, or inimical to it, as those of advanced economies allege fearfully. This note is intended to shed some light on this controversial question.
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