Toward Rational Accounting in an Era of Unstable Money, 1936–1976

For many years, the National Bureau of Economic Research has been making major studies on income, wealth, prices, business conditions, and inflation. These studies have
contributed to the public's understanding of the procedures for and results of economic calculations under varying circumstances, including changes in price levels. In his present paper, Solomon Fabricant traces the development of thinking over the past forty years on what has come to be called "inflation accounting," as well as the role the National Bureau has played in clarifying this thought and in evaluating the data essential to its implementation. He also describes the recent or contemplated changes in both national accounting and business accounting practices to deal with the problem of inflation. Finally, he assesses the progress made so far in developing the procedures and data needed for rational accounting in an era of unstable money, and notes the issues that remain open.