TITLE

A Post-Keynesian Approach to Monetary Theory

AUTHOR(S)
Moore, Basil J.
PUB. DATE
September 1978
SOURCE
Challenge (05775132);Sep/Oct78, Vol. 21 Issue 4, p44
SOURCE TYPE
Periodical
DOC. TYPE
Article
ABSTRACT
The post-Keynesian approach to monetary theory emphasizes that the size of the money stock is dependent on the need of central bankers to validate the growth of money wages. It also stresses the in dependence of investment from savings decisions. There is as yet no formal post-Keynesian theory of money that would correspond to the orthodox Keynesian or monetarist views on the subject. The consensus, such as it exists, is primarily negative rather than positive. However, by noting those key features of the prevailing orthodoxy which are explicitly rejected by the as yet relatively small group of post-Keynesian economists, it is possible to outline the distinguishing features of an alternative approach to monetary theory. These features include the serious recognition of historical time, with its implications for the rejection of general equilibrium analysis, the centrality of finance for investment behavior, the unique role of labor markets in the price determination process and the endogeneity of the money stock resulting from the need of central banks to validate the rate of growth of money wages.
ACCESSION #
6116680

 

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