Inflation and the Theory of Money by Robert James Ball. Aldine Publishing Company, Chicago, 1965.

Ball in his book combines wage push and demand pull by makingwages and aggregate expenditures functions of the same variable,expected profit. The expected profit (which is related to profits of theprevious period) is a function of the level and the rate of change ofunemployment. With a given level of profits of the last period, theexpected level of profits is negatively related to the current level ofunemployment and the change in unemployment. The expected level ofprofits stands as an index of the expected rate of inflation, on theassump¬tion that the money profits of enterprises will rise ininflationary conditions. The expected level of profits also affects thedecisions of firms in dividing their assets between cash balances andreal-capital assets. An increase in expected profits increases aggregateexpenditures through an expansion of investment (gross investmentmeasured in money terms) and a reduction of business money holdings,which raises income velocity. An increase in aggregate expenditure andoutput leads to an upward movement in the expected profits function. Butthis further increase in expected profit does not continue without anupper limit, especially when all idle-money balances have been activatedor interest rate rises fast enough. Therefore, the expansion stopsunless the money supply increases. The analysis takes the supply ofnominal money as exogenously determined by the decision of the monetaryauthorities; it is initially assumed to be constant.