Abstract
Using Imre Lakatos’ concepts concerning research programmes, it is shown that the assumption of the neutrality of money belongs to the hard core of neoclassical economics. This conclusion is based on the interrelation of the concept of the neutrality of money and that of efficient equilibria, a key notion of neoclassical economics. By showing that utility-maximizing equilibria determined by the private market do not necessarily exist if money is not assumed to be neutral, I prove that the neutrality of money is a necessary assumption for the existence of efficient equilibria. Furthermore, it will be shown that unscientific ad hoc modifications are utilized to protect this assumption, and that the research programme of neoclassical economics is hence degenerating.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
