The original version of Gustav Cassel's (1926) piece on the Japanese exchange rate (Cassel 1926), which was translated into Japanese, is located.
The controversy revolved around the desirability of the return to the gold standard at the old parity during the 1920s, and the usual narrative emphasizes the advocates of the return at the new parity, including Tanzan Ishibashi and Kamekichi Takahashi, both economic journalists, at the center of the debate because they understood Gustav Cassel's purchasing power parity argument and Keynes's skeptical stance toward the gold standard.
The liquidationist policy was criticized at the time by a small but notable group of economists, foremost among them Irving Fisher, John Maynard Keynes, and the Swede Gustav Cassel
. These economists formulated what came to be known as the "stabilizationist position," according to which maintaining a constant price level was the necessary and sufficient condition for ridding the economy of business cycles, especially depression and unemployment.
In Sweden, Gustav Cassel, probably the most famous political economist in the world in the years immediately after World War I, was the most outspoken economist in this respect.
Gustav Cassel was not always a vigorous proponent of private property rights.
(1994) The State as a Monster: Gustav Cassel and Eli Heckscher on the Role and Growth of the State.
A more venerable idea, attributable to the Swedish economist Gustav Cassel
writing in 1920, is that of purchasing power parity.
One person who could have resolved the debate was WICKSELL's countryman and contemporary, the Swedish economist GUSTAV CASSEL. In a 1928 journal article Cassel provided an extremely clear, compelling articulation of the quantity-theoretic foundations of the cumulative process.
For a straightforward, consistent account of the quantity theory version of the cumulative process and feedback policy rule one must look not to Wicksell but rather to the work of his compatriot and sometime rival Gustav Cassel. In his 1928 Quarterly Journal of Economics article, Cassel, without once mentioning Wicksell's name, (5) developed the cumulative process analysis for the case of a loan-created inconvertible banknote money administered by a central bank, which Cassel treats as the only bank in the economy.
It remained for Gustav Cassel, writing 30 years after the publication of Wicksell's Interest and Prices, and fully cognizant of what Wicksell had sought to accomplish, to express matters clearly and to articulate the active money view.