OH. 20 PURE THEORY OF THE CREDIT CYCLE 323

(4) Assumption Delta.

We have assumed in the Standard Case that therates of remuneration of the factors of productionremain the same in terms of money throughout thecycle, i.e. that the Commodity Inflation is not accom-panied by an Income Inflation. If this assumptionis not fulfilled, there will be a further increase in theconsumption price-level, superimposed on the rise dueto the Commodity Inflation, to the precise extent andfor the precise period that Income Inflation is present.

(5) Assumption Epsilon.

Let us next dispense with the assumption that thelength of process is the same for all commodities. Inthis case the price-level will be composed of com-modities of which some have not yet reached theirmaximum price and some have already passed it.The curve of the composite price-level will then take onthe familiar shape

instead of a straight line suddenly declining as in theStandard Case, where there is no hoarding :

or a curve rising more rapidly at first, and thensuddenly declining where there is hoarding :