Three Notes Commenting on Charles Goodhart’s ‘Keynes and Monetarism’

Abstract

Goodhart’s representation of Keynes’s theory of interest is in marked contrast to that of Davidson. The key to this contrast may be found in the last paragraph of Goodhart’s paper, which presents the choice of framework as being ‘a sticky price model’ and ‘a general equilibrium model’. Neither of these allows the notion of behavioural uncertainty in a context of irreversible historical time which was central to Davidson’s interpretation.