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The “Cambridge” critique of the quantity theory of money: A note on how quantitative easing vindicates it

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  • Maria Cristina Marcuzzo

Abstract

Through quantitative easing markets have been flooded with liquidity, but rather than inflation we have witnessed a general deflation because of the liquidity trap environment in which the banking system operated; this article revisits the arguments against the quantity theory in the “Cambridge” tradition of John Maynard Keynes, Richard Kahn, and Nicholas Kaldor, and defends their soundness and topicality.

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  • Maria Cristina Marcuzzo, 2017. "The “Cambridge” critique of the quantity theory of money: A note on how quantitative easing vindicates it," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 40(2), pages 260-271, April.
    • Handle: RePEc:mes:postke:v:40:y:2017:i:2:p:260-271
    DOI: 10.1080/01603477.2017.1286939
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    1. Targetti, Ferdinando, 1992. "Nicholas Kaldor: The Economics and Politics of Capitalism as a Dynamic System," OUP Catalogue, Oxford University Press, number 9780198283485.
    2. Antonella Tutino & Carlos E. Zarazaga, 2014. "Inflation is not always and everywhere a monetary phenomenon," Economic Letter, Federal Reserve Bank of Dallas, vol. 9(6), pages 1-4, June.
    3. L. R. Wray, 1990. "Money and Credit in Capitalist Economies," Books, Edward Elgar Publishing, number 474.
    4. Vasilev, Aleksandar & Maksumov, Rashid, 2010. "Critical analysis of Chapter 23 of Keynes’s Notes on Mercantilism in The General Theory of Employment, Interest and Money (1936)," EconStor Research Reports 155318, ZBW - Leibniz Information Centre for Economics.
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    Cited by:

    1. Maciej Ryczkowski, 2021. "Money and inflation in inflation-targeting regimes – new evidence from time–frequency analysis," Journal of Applied Economics, Taylor & Francis Journals, vol. 24(1), pages 17-44, January.
    2. Boháčik Ján, 2022. "Financial shocks and their effects on velocity of money in agent-based model," Review of Economic Perspectives, Sciendo, vol. 22(4), pages 241-266, December.

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