Robertson and the Liquidity Preference Theory of Interest

John R. Presley

Chapter 11 in Robertsonian Economics, 1978, pp 177-185 from Palgrave Macmillan

Abstract: Abstract The final stage in the saving/investment debate in the inter-war period was the introduction by Keynes of the liquidity preference theory of interest. If saving and investment were no longer to act together in the determination of the rate of interest, as in the so called ‘classical’ system, but were to marry themselves through changes in the level of income, how was Keynes to explain the determination of the rate of interest? If he supported the Robertsonian theory of interest,1 his precise theory of the multiplier would be substantially weakened by the influence of saving and investment upon the rate of interest. Of necessity he had to provide in the General Theory a new approach to interest rate determination.

Keywords: Interest Rate; Market Rate; Speculative Demand; Money Balance; Loanable Fund (search for similar items in EconPapers)
Date: 1978
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
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:pal:palchp:978-1-349-03239-6_17

Ordering information: This item can be ordered from
http://www.palgrave.com/9781349032396

DOI: 10.1007/978-1-349-03239-6_17

Access Statistics for this chapter

More chapters in Palgrave Macmillan Books from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().