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In defence of footnotes - a clarification of a misunderstanding of Keynes's definition of money

Authors :
Freedman, C.
Source :
Cambridge Journal of Economics. June, 1993, Vol. 17 Issue 2, p241, 4 p.
Publication Year :
1993

Abstract

Keynes's concept of money has been misunderstood and misrepresented due to economists having ignored a footnote where he explains his ideas clearly. When Keynes refers to interest rates as payment to compensate for liquidity loss, he includes a variety of different interest rates, and is not limiting himself to yields on long-term bonds. Bank deposits can be included in a definition of money, though they involve a slight loss of liquidity and yield a small rate of interest. This example illustrates that it is worth reading original works, rather than accounts of those works, so errors do not become implanted as part of academic folk history.

Subjects

Subjects :
Money -- Analysis
Economics

Details

ISSN :
0309166X
Volume :
17
Issue :
2
Database :
Gale General OneFile
Journal :
Cambridge Journal of Economics
Publication Type :
Academic Journal
Accession number :
edsgcl.14233262