A Keynesian View of Friedman’s Theoretical Framework for Monetary Analysis

Louise Davidson

Chapter 8 in Money and Employment, 1990, pp 132-151 from Palgrave Macmillan

Abstract: Abstract Despite Friedman’s numerous trenchant confrontations with ‘Keynesians’, he has never compared his analytical framework with the ‘Theory of a Monetary Economy’ developed by Keynes. The purpose of this paper is, therefore, to enumerate a few of the more fundamental conceptual differences between the monetary analysis of Keynes and that of Friedman. Keynes’s analysis involves (1) the concept of uncertainty in the Knight-Keynes sense, (2) the inapplicability of a Walrasian system to a real world production economy where false trades occur, and (3) the essential properties of money which follow from the existence of uncertainty. This paper shows that recognition of these conceptual differences leads to significantly different specification of the demand for money and its supply aspects in the Keynesian system compared with Friedman’s theoretical framework.

Keywords: Money Supply; Spot Market; Monetary Economy; Consumer Durable; Quantity Theory (search for similar items in EconPapers)
Date: 1990
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:978-1-349-11513-6_9

Ordering information: This item can be ordered from
http://www.palgrave.com/9781349115136

DOI: 10.1007/978-1-349-11513-6_9

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 ().