Inflation and Stabilization Policy, 1948–60

<jats:title>Abstract</jats:title> <jats:p>In the late 1940s, shortly after the end of the Second World War, Paul Samuelson became involved in many debates concerning the policies that should be used to reduce the business cycle and keep inflation low. This chapter recounts an important trip to Europe in 1948, during which he made many friendships, notably with economists in Scandinavia and Britain (Cambridge, Oxford, and London) that were to become very important parts of the academic network within which he worked. It shows how the problem of inflation was an important part of his work throughout this period that culminated in a widely cited article with his MIT colleague, Robert Solow.</jats:p>