 Hajo Riese’s “Theory of a Monetary Economy”: An Attempt at ReconstructionPeter Spahn
Chapter Chapter 7 in Post-war Keynesianism in Germany and Western Europe, 2025, pp 121-138 from Springer Abstract: Abstract Hajo Riese (FU Berlin) was a pioneer of the “Berlin School of Monetary Keynesianism”, particularly in the 1980s and 1990s. His research work was based on the roots of monetary theory in the work of J. M. Keynes, with a particular focus on the theory of capital and interest rates. While in Keynes liquidity preference remained an element of money demand, for Riese it formed the central variable of a theory of credit supply. The credit contract is not based on goods or goods equivalents, but on the nominal category of money, because this is the sole medium for the fulfilment of contracts. A basic portfolio selection analysis shows that besides the interest rate also the rate of return on real capital is determined by the liquidity premium. The central bank has to take into account the almost constitutional significance of monetary stability, which runs counter to the “easy money policy” usually demanded by Keynesians. Keywords: B2; E4; Interest rate theory; Monetary theory; Capital theory; Credit market; Market order; Keynesianism; Price stability; Unemployment (search for similar items in EconPapers) There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:spr:euhchp:978-3-032-00498-7_7 Ordering information: This item can be ordered from DOI: 10.1007/978-3-032-00498-7_7 Access Statistics for this chapter More chapters in The European Heritage in Economics and the Social Sciences from Springer |
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