In 1973 the * 1 2  I wish to thank Frank Browne and Vitor Gaspar for the valuable co-operation in preparing this article. See Jürgen Badura und Otmar Issing, Geldpolitik, Stuttgart 1980. “Das intertemporale Gleichgewichtssystem der Preise und die Bewegungen des Geldwertes” which can be translated as “The system of intertemporal price equilibrium and movements in the value of money”.
1  BIS Review 66/1999  system finally collapsed. The problems created were magnified by the increase in oil and commodity prices in 1973. This led to soaring inflation.3 A few years later the industrial world was caught in a combination of high inflation and substantially increased unemployment.