Classical Monetary Theory, New and Old

Jurg Niehans

Journal of Money, Credit and Banking, 1987, vol. 19, issue 4, 409-24

Abstract: The distinctive features of so-called "new classical" monetary theory may be listed as (1) rational expectations; (2) quantity th eory of money; (3) interest policy indeterminancy; (4) market clearin g; (5) neutral money; and (6) monetary policy ineffectiveness. This p aper investigates whether these features actually represent the tradi tion of classical and neoclassical economics since Richard Cantillon. The result is largely negative, "new classical economics" is a mis nomer. Keynes, however, with all his effort to create a revolution, r emained actually quite close to the tradition. Copyright 1987 by Ohio State University Press.

Date: 1987
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Persistent link: https://EconPapers.repec.org/RePEc:mcb:jmoncb:v:19:y:1987:i:4:p:409-24

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