Recent developments in monetary economics stress the nature of monetary injections, emphasizing that they have implications for the relationship between money and prices. In contrast, traditional approaches posit stable money demand functions that are independent of how money is injected. The former approach implies that certain proportionality relations between money and prices need not obtain. This permits the two approaches to be empirically distinguished, but only if an appropriate "experiment" is conducted. The colonial period is one such experiment. Colonial evidence suggests that the nature of injections is crucial to the effect on prices of changes in the money supply.

Focuses on the reproduction of predatory pricing in laboratory environment. Definition on predatory pricing; Methods used to construct experimental design; Effect of predation on price increase and efficiency. Focuses on the reproduction of predatorypricing in laboratory environment. Definition on predatorypricing; Methods used to construct experimental design; Effect of predation on price increase and efficiency.