Abstract
Keynes’s theory of liquidity preference sought to illuminate the essential properties of money under the conditions of uncertainty that often lead to involuntary unemployment. Subsequent Post-Keynesian literature built upon this concept to show that a deregulated financial system could induce phases of endemic financial instability and crises. Keynes’s finance motive provides an important starting point in Post- Keynesian theories of endogenous money. This article examines the controversies between two major contending analytical approaches, the Horizontalist and Structuralist schools.
Original language | English |
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Pages (from-to) | 348-359 |
Number of pages | 12 |
Journal | Review of Political Economy |
Volume | 25 |
Issue number | 2 |
DOIs | |
Publication status | Published - 2013 |
Keywords
- Keynes, John Maynard, 1883-1946
- banks and banking
- financial crises
- money