The economic principles underlying the Brandt Report are explained and evaluated. The Report uses a Keynesian model on a world scale, which fails to provide a clear explanation of the causes of inflation. The opposing monetarist (expectations) model hinges on such an explanation and suggests that the expansionary prescriptions of the Brandt Report will serve only to increase the rate of inflation, with no gain in output, in the long run. Advocates of the Brandt Report approach seem likely to lose the policy battle.