This paper examines Mises’ studies of the cumulative process. We shall show that Mises’ analysis contains three noticeable features for modern monetary economics: the subjective valuation of money, his unique transmission mechanism of monetary policy and the origin of the economic disturbance. As a result of these features, Mises’s analysis was characterized as unique monetary economics. Despite having the same purpose, the Austrian School adopted equilibrium analysis, while the Stockholm School adopted the disequilibrium analysis. The concept “turnover of the monetary rate of interest” is from the second and third features of Mises’ theory as described above, and provided the Austrian School’s analysis with the possibility of a business cycle theory. Thus it was not Hayek or Wicksell, but Mises, who directed the studies of the Austrian School. This is why we must elucidate the theoretical structure of Mises’ analysis.