Philip Cagan

Philip Cagan was an American economist best known for his work on monetary theory and the relationship between money supply and inflation. His most notable contribution, the "Cagan model," explored how expected inflation influences people's demand for money, helping to explain why people hold less cash during times of high inflation. This insight has informed central banking policies and economic strategies. Cagan's research highlighted the importance of understanding public expectations in economic behavior, influencing how policymakers manage economies to stabilize prices and promote growth.