MONEY 
ITSCT “ION WITH RISING AND FALLING 
PRICES 
PART 1 
GENERAL PRINCIPLES 
§ 1. Introduction. 
Many economic principles can be dealt with best 
in the first place on the assumption that when a 
change is observed in the price of a particular commo- 
dity or service it means a change of value peculiar 
to that one kind of commodity or service, and is not 
merely a part of a general change in the level of 
prices, which is onlv another name for a change in 
the value of money. In civilized countries in ordinary 
times, as in England for nearly a century before the 
War broke out in 1914, general changes in prices— 
rises or falls of prices {a%zen as a whole—were per- 
ceptible enough to exrarts and students, but were 
too gradual to be realised + “he mass of the people, 
or even to exercise any easi's recognized influence on 
the actions of the commercial and investing classes. 
In 1913 the aut’ n= +f Waary « 4 Brief Explanation 
of the Causes -torial Welfare, might well feel 
himself justifiea ‘a omitting the subject. But after 
the war the position is difierent ; that brought about 
a change in the general level of prices or value of 
money so great and so rapid that it is perceptible to 
everyone, and has immensely disturbed the relative 
material welfare ¢* classes and individuals and be- 
come an acknc: © veo faetien ‘3 aumerous 
directions. 
To endeavour to acquire some clear notion of what 
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