Taking Money Seriously

David Laidler

Canadian Journal of Economics, 1988, vol. 21, issue 4, 687-713

Abstract: This survey paper argues that Walrasian markets and monetary exchan ge are alternative, not complementary, arrangements for coordinating economic activity; that if one realizes this, many informational anomalies and price rigidities that appear "irrational" in a Walrasia n context can be understood as the outcome of maximizing behavior in a monetary economy; and that the precautionary approach to modelin g the demand for money takes on a particular importance in this way of looking at things. Empirical evidence on the demand for money is cite d in support of this point of view, which tends to reinstate the quantity of money as an important economic variable, in contrast to the New Classical vision of the economy whi ch downgrades money's importance.

Date: 1988
References: Add references at CitEc
Citations: View citations in EconPapers (35)

Downloads: (external link)
http://links.jstor.org/sici?sici=0008-4085%2819881 ... 3ATMS%3E2.0.CO%3B2-I (text/html)
only available to JSTOR subscribers

Related works:
Working Paper: TAKING MONEY SERIOUSLY (1988)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cje:issued:v:21:y:1988:i:4:p:687-713

Ordering information: This journal article can be ordered from
https://www.economic ... ionen/membership.php

Access Statistics for this article

Canadian Journal of Economics is currently edited by Zhiqi Chen

More articles in Canadian Journal of Economics from Canadian Economics Association Canadian Economics Association Prof. Werrner Antweiler, Treasurer UBC Sauder School of Business 2053 Main Mall Vancouver, BC, V6T 1Z2. Contact information at EDIRC.
Bibliographic data for series maintained by Prof. Werner Antweiler ().