On the Monetary Nature of the Principle of Effective Demand
Bibliographic Data
| ID | 12155373 |
|---|---|
| Authors | Giancarlo Bertocco (0000-0002-2373-4977, Dipartimento di Economia, Università degli Studi dell‘Insubria, Varese, Italy, corresponding author), Andrea Kalajzić (Dipartimento di Economia, Università degli Studi dell‘Insubria, Varese, Italy) |
| Year | 2020 |
| Volume | 49 |
| Issue | 1 |
| Pages | 1-22 |
| Publication date | 2020-01-02 |
| Open Access | No |
| Type | ARTICLE |
| Venue | International Journal of Political Economy (JOURNAL) |
| Journal identifiers | ISSN: 0891-1916 • E-ISSN: 1558-0970 |
| Publisher | Taylor & Francis (PUBLISHER • GB) |
| DOI | 10.1080/08911916.2020.1733775 |
| OpenAlex | W3023772653 |
| Language | EN |
| References cited | 40 |
Since the publication of The General Theory the relationship between money and the principle of effective demand has been a matter of never-ending studies by the Keynesian economists. There are at least three different ways to explain this relationship. The first explanation lies in the liquidity preference theory. The second, points out that the decisions to accumulate a kind of money differing from a commodity obtained by labor may cause a level of aggregate demand insufficient to absorb the level of income corresponding to full employment. Finally, the third explanation is associated with the endogenous money theory. The first aim of this paper is to highlight the limits of these analyses. The second aim is to present a different explanation of the monetary nature of the principle of effective demand based on Schumpeter’s analytical approach which underlines the role of bank money in a capitalist economy
Aggregate demand · Commodity · Economics · Effective demand · Endogenous money · Keynesian economics · Liquidity preference · Market economy · Market liquidity · Microeconomics · Monetary economics · Monetary policy · Monetary theory · Neoclassical economics · Economic Theory and Institutions · Economic Theory and Policy · Political Economy and Marxism
The general theory of employment, interest, and money
Theory of economic dynamics
John Maynard Keynes
History of Economic Analysis
The Monetary Theory of Production
Mr. Keynes and the "Classics"; A Suggested Interpretation
Business cycles
The Marxist Theory of Money
Income Distribution, Rentiers, and Their Role in a Capitalist Economy
Secular Stagnation, Low Growth, and Financial Instability
The Role of Money in Capitalism
Postwar Economic Problems
| Highly cited | No |
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