Towards a Monetary Theory of a Process of Change

Abstract

The divorce between monetary theory and the analysis of changes in the productive capacity of the economy clearly shows the failure of modern economic theory to integrate real and monetary disequilibria into a proper model. Thus, while contemporary crises call the attention on the radical technological and productive transformations under way, economists seem to go on thinking that the appraisal of the full impacts of monetary phenomena only requires short term analytical frameworks. Schumpeter had already pointed out that: “Modern votaries of Monetary Analysis introduce a most significant restriction they assume the organization and technique of production and the capital equipment as given (in the short run) (...).

This paper stems from: M. Amendola and J.L. Gaffard “The Innovative choice. An Economic Analysis of the Dynamics of Technology” Blackwell, Oxford, 1988.