This 1932 book is Fisher's most thorough description of his cash flow analysis of economic cycles. Classical economics, neoclassical economics and the Austrian school of economics all treat money as a commodity that is traded along with all other commodities as an economically neutral "medium of exchange". Fisher sees that this explanation only applies to a barter economy and these theories are incapable of adequately explaining the business cycle in a "money economy", especially the booms and depressions. It is changes in the quantity and distribution of the money supply that drive business cycles, not economic factors. A more concise version of Fisher's thinking along with his recommended solution is found in "100% Money and the Public Debt", his last booklet, published 1936. A recent update of this view, though with less radical and less permanent prescriptions for solving the depression problem, is Richard Koo's, "The Holy Grail of Macroeconomics" which is a post-2008 meltdown...
