Money, Interest and Capital: A Study in the Foundations of by Colin Rogers

By Colin Rogers

This e-book provides a examine within the foundations of financial concept with a number of certain gains. It includes components: a critique of the different types of neoclassical financial conception, and a rigorous assertion of the principles of put up Keynesian financial conception. the 2 elements mirror Joseph Schumpeter's contrast among financial theories within the divergent traditions of actual and fiscal research. half I bargains a singular critique of Wicksellian and neo-Walrasian common equilibrium models of genuine research. The critique of Wicksell's financial idea demonstrates the final impossibility of defining the usual interest rate with out which the loanable cash concept collapses. The critique of neo-Walrasian financial idea, nonetheless, exploits the inessential function of 'money' in transitority equilibrium and overlapping generations versions and develops a unique interpretation of the Patinkin controversy and the Clower finance constraint. the results of those advancements are then traced during the debates among monetarists and Keynesians. half II offers a rigorous argument for securing the principles of submit Keynesian financial concept within the culture of economic research. within the context of the evolution of the financial procedure from commodity cash to credits cash. Wicksell's normal interest rate is changed by way of Keynes's marginal potency of capital that is in flip utilized to Myrdal's inspiration of economic equilibrium to derive a proper definition of Keynes's aspect of powerful call for. This results in the main novel function of the e-book: the demonstration of the lifestyles of a long-run unemployment equilibrium with no the assumptions of inflexible wages. the primary of potent call for is proven to damage Say's legislation via putting a restrict at the ecocnomic enlargement of output ahead of complete employment is reached.

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14 Real Analysis and Monetary Analysis: an introduction much of Post Keynesian monetary theory. The analysis has several unique features. Firstly, the concept of monetary equilibrium proposed here provides an analysis of the principle of effective demand which differs from that suggested by most Post Keynesians and the so-called neo-Ricardians. The Post Keynesians define the principle of effective demand in terms of expected proceeds (Asimakopulos, 1984), and stress the necessity of a marginal propensity to consume of less than one for the refutation of Say's Law (Chick, 1983: 72).

14 Real Analysis and Monetary Analysis: an introduction much of Post Keynesian monetary theory. The analysis has several unique features. Firstly, the concept of monetary equilibrium proposed here provides an analysis of the principle of effective demand which differs from that suggested by most Post Keynesians and the so-called neo-Ricardians. The Post Keynesians define the principle of effective demand in terms of expected proceeds (Asimakopulos, 1984), and stress the necessity of a marginal propensity to consume of less than one for the refutation of Say's Law (Chick, 1983: 72).

From the perspective of modern monetary theory this distinction appears to involve the debate on the endogeneity or exogeneity of the money supply and we will take it up in later chapters. 94 on Wed Aug 31 17:38:04 BST 2016. 004 Cambridge Books Online © Cambridge University Press, 2016 26 Wicksellian monetary theory At any moment in time in any income situation there is always a certain rate of interest, at which the exchange value of money and the general level of commodity prices have no tendency to change.

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