 Keynesians, Monetarists and Keynes: The End of the Debate — or a Beginning?Chapter 6 in On Money, Method and Keynes, 1992, pp 101-115 from Palgrave Macmillan Abstract: Abstract In large part, monetarists and Keynesians, in their debate on the mechanism and efficiency of monetary policy, have accepted as ground rules the same economic model, the IS-LM model due to Hicks. It has been shown (Chick, 1973b; 1977, ch. 3) that short of restricting the parameters of that model to extreme values the debate cannot be settled on a priori argument alone. It was then suggested that the debate might usefully be couched in terms of the assumptions concerning adjustment rather than the static parameters, though this suggestion required persuading the monetarists to turn their attention to the early stages of the path to equilibrium. These points were made in the context of the ground rules of the debate as it then stood. Both the method — comparative static analysis and dynamic adjustment according to the correspondence principle — and a crucial assumption — that the mode of introduction of new money is a matter of indifference — were accepted for purposes of the argument. Keywords: Interest Rate; Monetary Policy; Money Supply; Capital Gain; Bank Lending (search for similar items in EconPapers) There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-1-349-21935-3_6 Ordering information: This item can be ordered from DOI: 10.1007/978-1-349-21935-3_6 Access Statistics for this chapter More chapters in Palgrave Macmillan Books from Palgrave Macmillan |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.