Year: 1975
Author: Pohl, Rüdiger
Credit and Capital Markets – Kredit und Kapital, Vol. 8 (1975), Iss. 2 : pp. 219–244
Abstract
On the Criticism of the Structure of Wealth and Relative Prices
In the literature on monetary theory, a great deal of space has been devoted to the transmission mechanism of relative prices. The article is a critique of this transmission theory. First: the action maxim assumed in the theory (income maximization by economic entities who act rationally) does not do justice to the broad variety of economically relevant behaviour. Secondly: lacking divisibility of individual wealth components neutralizes relative price effects to some extent. Thirdly: the existence of rigid asset-liability structures is neglected, as is the loss of action autonomy by debtors. Fourthly: thinking in terms of the stock of wealth entails a static consideration of economic behaviour. Furthermore, the substitutability of the various wealth components is limited. Fifthly: the actual rigidity inherent in the wealth structure is not adequately explained with the information costs/transformation costs conception. Sixthly: owing to its line of approach, the theory is incapable of assigning sufficient importance to the development-theory aspect of an economic system.
Journal Article Details
Publisher Name: Global Science Press
Language: Multiple languages
DOI: https://doi.org/10.3790/ccm.8.2.219
Credit and Capital Markets – Kredit und Kapital, Vol. 8 (1975), Iss. 2 : pp. 219–244
Published online: 1975-02
AMS Subject Headings: Duncker & Humblot
Copyright: COPYRIGHT: © Global Science Press
Pages: 26
Author Details
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Portfolioanalyse und die Konstruktion monetärer Modelle
Klaus, Conrad,
Credit and Capital Markets - Kredit und Kapital, Vol. 11 (1978), Iss. 4 P.517
https://doi.org/10.3790/ccm.11.4.517 [Citations: 1]