IDEAS home Printed from https://ideas.repec.org/a/rau/journl/v6y2011i4p37-54.html
   My bibliography  Save this article

Loanable Funds, Saving & Investment,And Financial Assets

Author

Listed:
  • William Barnett II

    (S. J. College of Business Loyola University New Orleans)

  • Walter Block

    (S. J. College of Business Loyola University New Orleans)

Abstract

We claim that macroeconomic modeling in terms of financial assets is superior to the more traditional model of loanable funds. One advantage of this perspective is that it allows us to take cognizance of the fact that the world is complex: there are many more than one market involved. It also enables us to shed light on the fallacies of “netting out” consumer borrowing and lending. As well, placing “the” interest rate on the vertical axis is problematic, as there is no invariant measure of the value of an asset. We take the position that the usual analysis of a single money market is a simplistic way to analyze a complicated situation. We argue that a focus on the market for loanable funds leads directly to the erroneous Keynesian money model.

Suggested Citation

  • William Barnett II & Walter Block, 2011. "Loanable Funds, Saving & Investment,And Financial Assets," Romanian Economic Business Review, Romanian-American University, vol. 6(4), pages 37-54, december.
  • Handle: RePEc:rau:journl:v:6:y:2011:i:4:p:37-54
    as

    Download full text from publisher

    File URL: http://www.rebe.rau.ro/RePEc/rau/journl/WI11/REBE-WI11-A4.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Roger W. Garrison, 2004. "Overconsumption and Forced Saving in the Mises-Hayek Theory of the Business Cycle," History of Political Economy, Duke University Press, vol. 36(2), pages 323-349, Summer.
    2. Harcourt,G. C., 2022. "Some Cambridge Controversies in the Theory of Capital," Cambridge Books, Cambridge University Press, number 9781009158152, September.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Gerald R. Steele, 2014. "Hayek’s Pure Theory of Capital," Chapters, in: Roger W. Garrison & Norman Barry (ed.), Elgar Companion to Hayekian Economics, chapter 4, pages 71-93, Edward Elgar Publishing.
    2. Garbellini, Nadia, 2020. "Measurement without theory, and theory without measurement: What's wrong with Piketty's capital in the XXI century?," Structural Change and Economic Dynamics, Elsevier, vol. 52(C), pages 50-62.
    3. Jeroen C. J. M. van den Bergh, 1999. "Materials, Capital, Direct/Indirect Substitution, and Mass Balance Production Functions," Land Economics, University of Wisconsin Press, vol. 75(4), pages 547-561.
    4. McCloskey Deirdre Nansen, 2018. "The Two Movements in Economic Thought, 1700–2000: Empty Economic Boxes Revisited," Man and the Economy, De Gruyter, vol. 5(2), pages 1-20, December.
    5. Engelbert Stockhammer & Paul Ramskogler, 2009. "Post-Keynesian economics How to move forward," European Journal of Economics and Economic Policies: Intervention, Edward Elgar Publishing, vol. 6(2), pages 227-246.
    6. Brendan Markey†Towler, 2017. "The Oxford Handbook of Post†Keynesian Economics, Volume 1: Theory and Origins," The Economic Record, The Economic Society of Australia, vol. 93(303), pages 659-661, December.
    7. Nuno Ornelas Martins, 2014. "Inequality, Sustainability and Piketty’s Capital," Working Papers de Economia (Economics Working Papers) 05, Católica Porto Business School, Universidade Católica Portuguesa.
    8. Alan Freeman, 1998. "A General Refutation of Okishio’s Theorem and a Proof of the Falling Rate of Profit," Palgrave Macmillan Books, in: Riccardo Bellofiore (ed.), Marxian Economics: A Reappraisal, chapter 10, pages 139-162, Palgrave Macmillan.
    9. Gunther Schnabl, 2012. "Monetary Policy Reform in a World of Central Banks," Global Financial Markets Working Paper Series 26-2012, Friedrich-Schiller-University Jena.
    10. Schnabl, Gunther, 2013. "The global move into the zero interest rate and high debt trap," Working Papers 121, University of Leipzig, Faculty of Economics and Management Science.
    11. Eckhard Hein, 2016. "Secular stagnation or stagnation policy? Steindl after Summers," PSL Quarterly Review, Economia civile, vol. 69(276), pages 3-47.
    12. Mark Setterfield & Joana David Avritzer, 2020. "Hysteresis in the normal rate of capacity utilization: A behavioral explanation," Metroeconomica, Wiley Blackwell, vol. 71(4), pages 898-919, November.
    13. John Hatch & Colin Rogers, 1997. "Distinguished Fellow of the Economic Society of Australia, 1996: Professor Emeritus Geoff Harcourt," The Economic Record, The Economic Society of Australia, vol. 73(221), pages 97-100, June.
    14. Ajit Sinha, 2015. "A Reflection on the Samuelson-Garegnani Debate," Economic Thought, World Economics Association, vol. 4(2), pages 1-48, September.
    15. G.C. Harcourt, 2011. "Post-Keynesian theory, direct action and political involvement," European Journal of Economics and Economic Policies: Intervention, Edward Elgar Publishing, vol. 8(1), pages 117-128.
    16. Timothy J. Garrett & Matheus R. Grasselli & Stephen Keen, 2020. "Past production constrains current energy demands: persistent scaling in global energy consumption and implications for climate change mitigation," Papers 2006.03718, arXiv.org.
    17. Kazuhiro Kurose, 2022. "A two-class economy from the multi-sectoral perspective: the controversy between Pasinetti and Meade–Hahn–Samuelson–Modigliani revisited," Evolutionary and Institutional Economics Review, Springer, vol. 19(1), pages 239-270, April.
    18. Amitava Krishna Dutt, 1989. "Sectoral Balance: A Survey," WIDER Working Paper Series wp-1989-056, World Institute for Development Economic Research (UNU-WIDER).
    19. Robert Dixon, 2018. "Marx 200 years on," The Economic and Labour Relations Review, , vol. 29(4), pages 481-500, December.
    20. Hoffmann, Andreas & Schnabl, Gunther, 2016. "Monetary policies of industrial countries, emerging market credit cycles and feedback effects," Journal of Policy Modeling, Elsevier, vol. 38(5), pages 855-873.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:rau:journl:v:6:y:2011:i:4:p:37-54. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Alex Tabusca (email available below). General contact details of provider: https://edirc.repec.org/data/ferauro.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.