By Allan H. Meltzer
During this rigorous learn of John Maynard Keynes's perspectives on fiscal idea and coverage from 1920-1946, Professor Meltzer argues that a few of Keynes's major rules were overlooked or misstated. whereas cognizance has curious about non permanent countercyclical guidelines, the most coverage implications were overlooked. Keynes put nice emphasis on ideas, predictability, and aid of uncertainty. in accordance with his theoretical paintings, he adversarial discretionary monetary adjustments and favorite principles to minimize instability and elevate the capital inventory. those guidelines are in line with, and supply proof for, the translation of Keynes's concept constructed the following.
Read Online or Download Keynes's Monetary Theory: A Different Interpretation PDF
Similar money & monetary policy books
This ebook offers a entire and systematic creation to the matter of the definition of cash and investigates the profits that may be accomplished by way of a rigorous use of microeconomic- and aggregation-theoretic foundations within the development of financial aggregates. It offers readers with key features of economic economics and macroeconomics, together with financial aggregation, call for platforms, versatile sensible kinds, long-run financial neutrality, the welfare fee of inflation, and nonlinear chaotic dynamics.
This publication surveys the clients for local financial integration in numerous elements of the realm. starting with a short evaluate of the speculation of optimum foreign money components, it is going directly to learn the constitution and functioning of the eu financial Union, then turns to the customers for financial integration in other places on this planet - North the USA, South the United States, and East Asia.
Via exploring the associated fee dynamics and enterprise cycle of the Italian financial system on the subject of an important overseas occasions, this article sheds new gentle at the country's present scenario. utilizing a long term analytical framework underpinned through central theoretical methods, the research locations specific emphasis on cost dynamics.
- Money Stock Control and Inflation Targeting in Germany: A State Space Modelling Approach to the Bundesbank’s Operating Procedures and Intermediate Strategy
- All about metal
- Regional Convergence in the European Union: Facts, Prospects and Policies
- Accountability and Oversight of US Exchange Rate Policy (Policy Analyses in International Economics)
- The French Road to European Monetary Union
Additional info for Keynes's Monetary Theory: A Different Interpretation
325). , p. 326); this presumes a growth rate of at least 3 percent compounded annually, slightly above Britain's long-term experience. , p. 21 The problem of the future will be how to use leisure. Old ideas will have to be replaced by the most sure and certain principles of religion and traditional virtue - that avarice is vice, that exaction of usury is a misdemeanor, and the love of money is detestable, that those walk most truly in the paths of virtue and sane wisdom who take least thought for the morrow.
Xvii) cautions the reader that Keynes's ideas had developed and changed in the seven years since he had started work on the book. He was aware that remnants of his past beliefs mingled with his newer views and that the old and the new were not always compatible. Keynes's revisions reflected his intellectual development, his experience during the period, and the events that gave rise to that experience. Many of these events are known, at least in broad outline. Britain had pursued a relatively deflationary policy during the early 1920s in an effort to restore the fixed parity with gold at the prewar exchange rate.
In the Treatise, a decline in profits reduces investment of all kinds, including working capital (raw material). When the ratio is above unity, the nominal cost of producing output is above nominal expenditure (MV). In Keynes's terms, costs increased relative to selling prices, so Keynes expected investment and output to fall. In his terms, profits were low or negative and (inventory accumulation) investment was discouraged. A fall in costs (wholesale prices) relative to (selling) prices increased profits and stimulated business investment in inventories and durable capital.