Advertisement

The Value of Money

  • John R. Presley

Abstract

The major omission from the Robertsonian analysis so far is the failure to enquire as to the determination of the price level. It has been seen that price changes are an integral part of the forced saving process — and by now there should be no necessity to elaborate the importance of this process both for the theory of industrial fluctuation, and for the Keynes/Robertson debate on the multiplier and interest theories; but the theory of how the aggregate price level is determined is not part of the latter debate. The General Theory is principally a theory of employment, not an explanation of inflation; for Robertson prices are free to vary even where unemployed resources exist. This chapter takes as its theme the Robertsonian explanation of price movements, but the objective is wider than this. In addition it will show the integration found between the theories of interest and prices, the extent to which the Robertsonian theory of prices followed in the Marshallian tradition, and the reaction of Robertson to Patinkin’s interpretation of the neo-classical theory of absolute prices.1

Keywords

Price Level Money Supply Real Income Price Determination Proportional Relationship 
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.

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

The Value of Money

  1. 1.
    See especially D. Patinkin, Money, Interest and Prices, (New York: Harper & Row Ltd., 1956).Google Scholar
  2. 2.
    DHR, Money, 1st ed. (1922) Preface p. vii.Google Scholar
  3. [Note the similarity here with JMK, Tract on Money Reform, (London: Macmillan, 1923) see especially pp. 68ff.]Google Scholar
  4. 9.
    DHR, Money, (1928 ed.) p. vii.Google Scholar
  5. 11.
    DHR, Money, (1928 ed.) p. 37.Google Scholar
  6. 16.
    A. C. Pigou, Essays in Applied Economics, (London, 1917).Google Scholar
  7. 52.
    See the collection of articles gathered together by R. Clower in Monetary Theory 1st ed., (Penguin Education, 1969).Google Scholar
  8. 53.
    See Denis O’Brien The Classical Economist, (Oxford University Press, 1975) pp. 159–165.Google Scholar

Copyright information

© John R. Presley 1978

Authors and Affiliations

  • John R. Presley

There are no affiliations available

Personalised recommendations