Year: 1976
Author: Johnson, Harry G.
Credit and Capital Markets – Kredit und Kapital, Vol. 9 (1976), Iss. 2 : pp. 145–153
Abstract
Comment on Mayer on Monetarism
Discussion of monetarism belongs to a recently passed era of U.S. policy debates and runs the danger of formalization. Of Mayer’s“ propositions, the crucial one is the assumption of a stable demand for money which differentiates monetarism from both Keynesian theory and the old quantity theory (unstable velocity) that Keynes attacked. Classical quantity theory went through two phases; the “neutrality of money” phase, designed to clear the way for real general equilibrium analysis; and “the conditions for money equilibrium analysis”, of disturbances to real and monetary equilibrium in a monetary economy. Prewar II theorists never regarded policy changes in money supply as a destabilizing factor, and treated expectational change in money demand as involving instability of velocity; to be offset by policy. Modern quantity theorists instead make policy a chief disturber of equilibrium, in the face of a stable demand for money.
Journal Article Details
Publisher Name: Global Science Press
Language: Multiple languages
DOI: https://doi.org/10.3790/ccm.9.2.145
Credit and Capital Markets – Kredit und Kapital, Vol. 9 (1976), Iss. 2 : pp. 145–153
Published online: 1976-02
AMS Subject Headings: Duncker & Humblot
Copyright: COPYRIGHT: © Global Science Press
Pages: 9
Author Details
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https://doi.org/10.1007/BF02299013 [Citations: 0]
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