“According to Transformational Growth, the function of the market is to generate competitive pressures to innovate. Two ideal type periods are distinguished: the period of craft technology, where declining demand leads to a decline in prices, and the following period of mass production, in which batch production is replaced by continuous throughput and the ability to vary employment and output with demand. The general trend of prices is downward in the old system, generating productivity growth. In the new system, (both) prices (and money wages) have the tendency to be sticky or to rise. The question which will be discussed in this chapter refers to the proposition of Transformational Growth that in the new system ‘money prices either rise or stay steady; they seldom, if ever, fall’” (H. Peukert)