James Edward Meade (1907–1995) was a renowned British economist who, alongside Bertil Ohlin, was joint winner of the 1977 Nobel Prize in Economics. Originally published in 1958, this book contains the transcription of Meade's inaugural lecture as Professor of Political Economy at Cambridge University, delivered during the same year. Concise and highly readable, it will be of value to anyone with an interest in economic history, theories regarding inflation, and macroeconomic theory in general.