Journal Article Steel, Administered Prices and Inflation: Comment Get access Warren S. Gramm Warren S. Gramm University of California, Davis Search for other works by this author on: Oxford Academic Google Scholar The Quarterly Journal of Economics, Volume 76, Issue 2, May 1962, Pages 320–325, https://doi.org/10.2307/1880825 Published: 01 May 1962

The basis of investment pessimism, 549. — The new view, 551. — A simple model of growth, 553. — Investment and productivity in the long run, 555. — Investment and productivity in the short run, 560. — The rate of return on current investment, 563.— Summary, 567.

I would like to thank Mr. Ball for his thoughtful criticism 1 of my proposal to extend a foreign exchange guarantee to official holdings of foreign exchange and for this opportunity to clarify some points in my original presentation.2 Mr. Ball has levied three general criticisms against my proposal for introducing a multilateral exchange guarantee for official holdings of foreign exchange through the intermediary of the IMF:

Reviews the book "Accounting Systems," by Cecil Gillespie.

Abstract A lot of the arguments concerning the relationship between depreciation and "funds" are due to definitional rather than substantive differences. This article attempts to clarify some major sources of either misconception or trouble that arise in discussions concerning fund statements. Some people wish to use the word "funds" in such a way as to include not only ready cash but also all the classifications included in net working capital, while others use the terms funds and cash as synonymous. There are cases, however, where the difficulty is caused by erroneous assumptions. One of such assumptions is that the undepreciated cost of assets sold is not a source of funds. The author shows that depreciation does not generate funds at the point of sale, no matter how "funds" are defined. However, at the point of production, depreciation generates working capital if it is incorporated into the inventorial product. Since most of the confusion involves issues associated with depreciation, it suggests that a definition of "funds" limited to "cash and cash equivalent" will eliminate a lot of the temptation to elevate mechanics to the status of principles.