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Idle Balances and Keynesian Theory

Alexander Dow () and Sheila Dow

Scottish Journal of Political Economy, 1988, vol. 35, issue 3, 193-207

Abstract: J. M. Keynes discussed the ideas of The General Theory at length with R. G. Hawtrey and D. H. Robertson. In their correspon dence, the notion of idle (or inactive) balances figures prominently. Each had a different understanding of what idle balances were and wh at their significance was. This article reviews the debate over idle balances in the 1930s. The suggestion is pursued that the concept of idle balances may still have content, and may, for example, be helpfu l in clarifying a recent debate on the role of finance in Keynesian t heory. Copyright 1988 by Scottish Economic Society.

Date: 1988
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Scottish Journal of Political Economy is currently edited by Tim Barmby, Andrew Hughes-Hallett and Campbell Leith

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