Economic Theory Contribution
In 1916, Kassel is based on the predecessor's academic theory, systematically proposes: the exchange rate of the two countries is mainly determined by the purchasing power of the two countries. That is: Theory of Purchasing Power Parity, referred to as PPP theory.
Kassel proposes one of the Cassel Economic Cycle in the Western Economic Cycle Theory. Originally used "excessive investment" to explain the fluctuations of the economic cycle.
Academic Achievements
Kassel 's academic research focuses on economic reality, especially interest in the role of economic activities, his thoughts are rooted in the UK new classical economics (also known as Cambridge School ) And the Stockholm school (also known as Swedish school). Kassel's reputation part from John Menard Cairns published in 1923, "Monetary Reform", which mentioned Cassel's purchasing power parity theory to make Kassel in the academic community, but He tried to oppose the theory of marginal productivity in the landscape revolution. Kassel did not believe in the value theory of traditional economists, he believes that the theory of value is unnecessary, and it is interested in price research.
In addition to the 2003 purchase power parity theory, Castel published the "Nature and Necessity of Interest Rate" in 1903, and in 1918, "excessive consumption" is proposed. theory. He also participated in the discussion of German War for the First World War. In the first twentieth year of the 20th century, Kassel was active in the practice of developing economic policies. He successively served as members of Different Committee in Sweden, and spent a lot of effort to participate in the design of the national budget control. In 1921, he participated in the International Business Conference organized by the Swedish government's representatives. Kassel is also a member of the Royal Swedish Empress and Royal Economic Society.
"Kassel has made him become a journal in the war during the war period, and his authority is second only to Kaires, his suggestion is rapidly adopted by his motherland and foreign government."
Castel has published a lot of foreign language published in addition to Swedish writing: "The Right of Labor Income" (1900, German: Das Recht Auf Den Vollen Arbeitsrtrag), "Nature and Necessity of Interest Rate" (1903, English: The Nature and Necessity Of Interest), Social Economics Theory (1919, German: Theoretische Sozialökomie). In 1920, Kassel wrote a memorandum for the world currency, published in the International Financial Conference held by Brussels, Belgium, attracted wide attention in the academic community in the International Finance Conference held by Brussels, Belgium.
Kassel's purchasing power parity is huge, and it is still the foundation of the theory of foreign exchange exchange rate decision to today. Purchase power parity Theory is the basis for the rules of the group, and a price of the price pointed out that the price of one of the same shipments in different places should be consistent. Purchase power parity Theory is the change of exchange rates from prices, in other words, the big premise of purchasing power parity theory is to believe in the establishment of a price. If the exchange rate in the two places is 1: 5, Apple's price is 2 A coins in the AB, then the price of this apple should be 10 p coins. But if Apple is only sold by 8 B, according to the point of purchase of the purchase power parity theory, this is because the B currency rises or relatively a currency depreciation, and the exchange rate in AB should be 1: 4. A currency should be depreciated 20%, or the B currency should be appreciated by 25%. From commodity prices to determine exchange rates, also known as absolute purchasing power parity theory.
Cassell supports the international community to re-adopt the golden brakes that have been abandoned since a war. The maintenance of the gold bracelet is the essence of the purchasing power parity theory, and the exchange rate between different currencies is determined by the price of different monetary marks. This currency system is advantageous to stabilize and maintain currency values to avoid malignant inflation.
Cassel's famous student includes two Nobel's economics award winners Gothad Betty Russin, Gonal Madtore and the future Swedish Wen Party leader, politics House and economist Costa Bagh