Abstract
The development of monetary economics is closely associated with a possible conflict between the explanation of relative prices by means of demand and supply as conditioned by substitution and scarcity on the one hand, and the average level of money prices seen as being explained by the supply and demand for money on the other. While classical economists avoided this conflict by distinguishing between real and monetary spheres in an economy, others have followed Wicksell’s lead to restrict monetary economics to the study of disequilibria and adjustment problems. By showing the consistency between Keynes’ General Theory and Hayek’s ‘Economics and Knowledge’, this paper provides a rationale for focusing on monetary controversy outside the ‘Wicksell Connection’.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Disclaimer: 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.