Patinkin, Don (1922–1955)
Don Patinkin’s main contributions are in monetary theory, including the topics of involuntary unemployment and the interpretation of the writings of J.M. Keynes. He criticized the classical and neoclassical monetary model for its ‘invalid dichotomy’ between the real and the monetary sectors. His main underlying concern was whether capitalism possessed an automatic mechanism for attaining full employment. He claimed that the real interest rate might be insufficiently flexible and the real balance effect insufficiently powerful to allow any rapid convergence to equilibrium, rendering it politically unrealistic to rely on automatic forces to establish full-employment equilibrium in reasonable time.
KeywordsCapitalism Chicago School Clower constraint Cowles Commission Friedman, F. Involuntary unemployment IS–LM model Keynes, J.M. Kuznets, S. Monetary economics, history of Neoclassical monetary theory Patinkin, D. Quantity theory of money Real vs monetary sector dichotomy Real-balance effect Samuelson, P. Stability analysis Walras’s Law
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