Reconstructing the Quantity Theory (I)

Egmont Kakarot-Handtke ()

MPRA Paper from University Library of Munich, Germany

Abstract: The quantity theory is disjunct to the hard core of general equilibrium theory. It does not relate to the formal foundations of standard economics and, vice versa, from the behavioral axioms of standard economics a rationale for using money cannot be derived. The present paper leaves the standard axioms aside and reconstructs the quantity theory from entirely new structural axiomatic foundations. This gives a coherent view of the interrelations of quantity of money, transaction money, saving–dissaving, liquidity–illiquidity, rates of interest, leverage, allocation, prices, profits, unit of account, and employment.

Keywords: New framework of concepts; Structure-centric; Axiom set; Money-credit symmetry; Endogeneity; Accommodation; Neutrality; Store of value; Overlapping generations; Full gold-backing; Declarative changes of the unit of account; Contract equation; Perfect inflation; Real balance effect (search for similar items in EconPapers)
JEL-codes: E10 E20 E40 (search for similar items in EconPapers)
Date: 2011-07-26
New Economics Papers: this item is included in nep-hpe, nep-mac and nep-mon
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (31)

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https://mpra.ub.uni-muenchen.de/32421/1/MPRA_paper_32421.pdf original version (application/pdf)
https://mpra.ub.uni-muenchen.de/32432/1/MPRA_paper_32432.pdf revised version (application/pdf)
https://mpra.ub.uni-muenchen.de/32536/1/MPRA_paper_32536.pdf revised version (application/pdf)

Related works:
Working Paper: Reconstructing the Quantity Theory (II) (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:32421

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