Karl Gustav Cassel
|Born||October 20, 1866
|Died||January 14, 1945|
|Institutions||University of Stockholm|
|Known for||Purchasing Power Parity
Work on Interest
Karl Gustav Cassel (born October 20, 1866) was a Swedish economist and was Professor of Economics at the University of Stockholm, Sweden.
Cassel's perspective on economic reality, and especially on the role of interest, was rooted in British neoclassicism and in the nascent Swedish schoolis. He is perhaps best know for his article Tract on Monetary Reform (1923), in which he raised the idea of Purchasing Power Parity. He was also a founding member of the Swedish school of economics, along with Knut Wicksell and David Davidson. Cassel came to economics from mathematics. He earned an advanced degree in mathematics from the University of Uppsala and was made professor at the University of StockholmAmong his other contributions apart from the rudiments of a purchasing power parity theory of exchange rates (1921). He produced an 'overconsumption' theory of the trade cycle (1918) and Nature and Necessity of Interest (1903). He also worked on the German reparations problem