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 commodity
 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 perceptible
 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 become
 an acknc: © veo faetien ‘3 aumerous
directions.
To endeavour to acquire some clear notion of what
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