2 
Inflation and Stabilization 
which we have been witness. But this is not merely 
a matter of scientific interest. A clear and consist- 
ent theory is necessary in order that the practical 
business man, the banker, or the leader of mone- 
tary policy should be able to come to a deeper 
understanding of the questions he has to deal with, 
and thus have a reliable guide for his decisions. 
And the leading practical and theoretical econo- 
mists of the world will still have to cooperate for 
a long time in order to build up.the monetary 
system that shall secure to the world a solid 
ground for its future economic development. 
Having the honor to be invited to give a series 
of lectures at this University, it is natural for me, 
in view of the situation described, to devote some 
lectures to the great problem of post-War mon- 
etary stabilization. It is obviously necessary in 
this discussion to include an analysis of the pre- 
ceding inflation of currencies. I think we should do 
well to look upon the matter first as a purely in- 
ternal problem relating only to one currency, and 
then to take up the relations between different cur- 
rencies as affected by inflation and stabilization. 
The history of money recorded many cases of 
inflation long before the World War, but the les- 
sons of these cases seem to have been almost com- 
pletely forgotten at that time. People actually