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J. Tobin: Marginal Productivity, Money and Growth

  • J. A. Kregel

Abstract

A novel attempt to blend a Keynesian and neoclassical growth system, complete with marginal analysis, is presented by James Tobin in a paper on ‘Money and Economic Growth’.1 As the title suggests, the paper is an attempt to analyse the role of money in a model of economic growth. Tobin attempts to monetise a standard neoclassical model by means of emphasising the Keynesian consumption—savings—money-holding decisions via his well-known concept of portfolio balance. The two-sided decision, to save or spend, and what form to hold savings, is the crux of the Keynesian format of the model. Unfortunately these savings and portfolio decisions are the only Keynesian aspects of the model. Tobin’s model is neoclassical in all other aspects and it assumes full employment and the applicability of Say’s Law.2

Keywords

Capital Stock Physical Capital Marginal Productivity Natural Rate Full Employment 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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References

  1. 2.
    R. F. Harrod, Economic Essays ( London: Macmillan, 1952 ) 260.Google Scholar

Copyright information

© J. A. Kregel 1971

Authors and Affiliations

  • J. A. Kregel
    • 1
  1. 1.University of BristolUK

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