This book presents a study in the foundations of monetary theory
with several unique features. It consists of two parts: a critique
of the varieties of neoclassical monetary theory, and a rigorous
statement of the foundations of Post Keynesian monetary theory. The
two parts reflect Joseph Schumpeter's distinction between monetary
theories in the divergent traditions of Real and Monetary Analysis.
Part I offers a novel critique of Wicksellian and neo-Walrasian
general equilibrium versions of Real analysis. The critique of
Wicksell's monetary theory demonstrates the general impossibility
of defining the natural rate of interest without which the loanable
funds theory collapses. The critique of neo-Walrasian monetary
theory, on the other hand, exploits the inessential role of 'money'
in temporary equilibrium and overlapping generations models and
develops a novel interpretation of the Patinkin controversy and the
Clower finance constraint. The implications of these developments
are then traced through the debates between monetarists and
Keynesians. Part II presents a rigorous argument for securing the
foundations of Post Keynesian monetary theory in the tradition of
Monetary Analysis. In the context of the evolution of the monetary
system from commodity money to credit money. Wicksell's natural
rate of interest is replaced by Keynes's marginal efficiency of
capital which is in turn applied to Myrdal's notion of monetary
equilibrium to derive a formal definition of Keynes's point of
effective demand. This leads to the most novel feature of the book:
the demonstration of the existence of a long-run unemployment
equilibrium without the assumptions of rigid wages. The principle
of effective demand is shown to break Say's Law by placing a limit
on the profitable expansion of output before full employment is
reached.
General
Imprint: |
Cambridge UniversityPress
|
Country of origin: |
United Kingdom |
Series: |
Modern Cambridge Economics Series |
Release date: |
May 1989 |
First published: |
1989 |
Authors: |
Colin Rogers
|
Dimensions: |
218 x 141 x 24mm (L x W x T) |
Format: |
Paperback - Trade
|
Pages: |
336 |
ISBN-13: |
978-0-521-35956-6 |
Categories: |
Books >
Business & Economics >
Economics >
Macroeconomics >
Monetary economics
|
LSN: |
0-521-35956-2 |
Barcode: |
9780521359566 |
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