 The finance motive, the Keynesian theory of the rate of interest and the investment multiplierThe European Journal of the History of Economic Thought, 2001, vol. 8, issue 1, 58-74 Abstract: Reconstructing the whole debate on the finance motive, this work highlights the importance of Robertson's and Shaw's critical comments on the Keynesian theory of the rate of interest. Saving and liquidity cannot be conceived — as Keynes and the post-Keynesians claim — as separate categories, in that they are functionally related. This doesn't necessarily means that one has to abandon a monetary theory of the rate of interest which is based on the liquidity preferences of banks and wealth-holders (Kaldor, Shackle). Moreover, we point out a difficulty for the functioning of the multiplier that arises when — according to Keynes — the liquidity position of the revolving fund of finance is restored at the end of the circulation period. Keywords: Finance Motive Theory Of The Rate Of Interest Multiplier Liquidity Preference Saving (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:taf:eujhet:v:8:y:2001:i:1:p:58-74 Ordering information: This journal article can be ordered from DOI: 10.1080/713765224 Access Statistics for this article The European Journal of the History of Economic Thought is currently edited by José Luís Cardoso More articles in The European Journal of the History of Economic Thought from Taylor & Francis Journals |
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