The Conditions for Money as the Standard
Part of the Keynesian Studies book series (KST)
We can now bring the argument of the previous chapter together and develop some of its aspects further.
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Notes and References
- 5.In addition to the discussion and references given in Chapter 1 of the present volume, Milton Friedman’s and Anna Schwartz’s critique of alternative approaches to the definition of money, in ‘The Definition of Money: Net Wealth and Neutrality as Criteria’, Journal of Money, Credit and Banking (February 1969) pp. 1–14, is required reading.Google Scholar
- 6.Keynes, General Theory, p. 167, n. 1. In this respect it is helpful to think in terms of primary (legal-tender) money and secondary (bank-deposit) money components of the quantity of directly spendable resources. In the British context the distinction between current (demand) and deposit-account (time) deposits is insignificant. The most successful a priori demonstration that money should be defined as co-extensive with (clearing bank) deposits is provided by W. T. Newlyn, Theory of Money (Oxford: Clarendon Press, 1962). Though Friedman dismisses this approach, he reaches the same conclusion by an entirely different route: see Friedman and Schwartz, ‘Definition of Money’.Google Scholar
© Gordon A. Fletcher 1989