IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/2303.html
   My bibliography  Save this paper

What happens in crashes? a non-equilibrium, value-theoretic approach to liquidity preference

Author

Listed:
  • Freeman, Alan

Abstract

This paper, presented at the 1998 conference of the European Association for Evolutionary Political Economy in Lisbon, shows how variations in the value of money, and in the exchange rate between different moneys of account, lead to transfers of value on the one hand between national or continental monetary blocs and on the other, between the financial and productive sectors of a single national economy. It discusses how these transfers may serve as the mechanism underlying the business cycle and suggests that they may also account for the phenomenon of liquidity preference. It suggests that the concept of liquidity preference constitutes a potential common ground between value-theoretic and post-Keynesian schools of thought. It is set against the background of the 1997 Asian crisis and reflects on the role and reliability of the economics profession.

Suggested Citation

  • Freeman, Alan, 1998. "What happens in crashes? a non-equilibrium, value-theoretic approach to liquidity preference," MPRA Paper 2303, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:2303
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/2303/1/MPRA_paper_2303.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Philip Arestis (ed.), 1988. "Post-Keynesian Monetary Economics," Books, Edward Elgar Publishing, number 15.
    2. John B. Davis (ed.), 1992. "The Economic Surplus In Advanced Economies," Books, Edward Elgar Publishing, number 126.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Desai, Radhika & Freeman, Alan, 2011. "Value and Crisis Theory in the 'Great Recession'," MPRA Paper 48645, University Library of Munich, Germany, revised 20 Apr 2011.
    2. Freeman, Alan, 1999. "Four endogenous market failures which (TSS) value explains better: Inequality, Unemployment, Crisis and Liquidity Preference," MPRA Paper 52796, University Library of Munich, Germany, revised 10 May 1999.

    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. M. Lopreite, 2012. "The endogenous money hypothesis and securitization: the Euro area case (1999-2010)," Economics Department Working Papers 2012-EP02, Department of Economics, Parma University (Italy).
    2. Jan Toporowski, 1999. "Kalecki and the Declining Rate of Profit," Review of Political Economy, Taylor & Francis Journals, vol. 11(3), pages 355-371.
    3. Mary Wrenn, 2011. "The Economic Surplus as a Fund for Social Change and Postneoliberal Governance," Forum for Social Economics, Taylor & Francis Journals, vol. 40(1), pages 99-117, January.
    4. Paul M. Sweezy, 1999. "The Veblen-Commons Award," Journal of Economic Issues, Taylor & Francis Journals, vol. 33(2), pages 219-221, June.
    5. Nuno Ornelas Martins, 2016. "Political aspects of the capital controversies and capitalist crises," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 39(4), pages 473-494, October.
    6. Frederic Lee & Tae-Hee Jo, 2011. "Social Surplus Approach and Heterodox Economics," Journal of Economic Issues, Taylor & Francis Journals, vol. 45(4), pages 857-876.
    7. FIGUERA, Stephano, 2002. "La réforme du système monétaire international : une réflexion dans une perspective keynésienne," LATEC - Document de travail - Economie (1991-2003) 2002-01, LATEC, Laboratoire d'Analyse et des Techniques EConomiques, CNRS UMR 5118, Université de Bourgogne.
    8. Phillip O’Hara, 2011. "Economic Surplus, Social Reproduction, Nurturance and Love," Forum for Social Economics, Springer;The Association for Social Economics, vol. 40(1), pages 19-40, April.
    9. Chilosi, Alberto, 2000. "Kalecki's Theory of Income Determination and Modern Macroeconomics," MPRA Paper 54853, University Library of Munich, Germany, revised 29 Mar 2014.
    10. Phillip Anthony O’Hara & Howard Jay Sherman, 2004. "Veblen and Sweezy on Monopoly Capital, Crises, Conflict, and the State," Journal of Economic Issues, Taylor & Francis Journals, vol. 38(4), pages 969-987, December.
    11. Anna Klimina, 2013. "Placing the Analysis of Contemporary State Capitalism within an Evolutionary Discourse," Journal of Economic Issues, Taylor & Francis Journals, vol. 47(2), pages 545-554.
    12. Zijp, R. van & Visser, H., 1992. "Mathematical formalization and the analysis of Cantillon effects," Serie Research Memoranda 0002, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
    13. Ayse Ozden Birkan & Serpil Kahraman Akdogu, 2016. "The geography of financial intermediation in Turkey: 1988–2013," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 57(1), pages 31-61, July.
    14. James Culham & John E. King, 2013. "Horizontalists and Verticalists after 25 years," Review of Keynesian Economics, Edward Elgar Publishing, vol. 1(4), pages 391—405-3, October.
    15. Peter Howells & Khaled A. Hussein, 1999. "The Demand for Bank Loans and the “State of Trade”," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 21(3), pages 441-454, March.
    16. Gustavo Junca, 2006. "Modelo de zonas objetivo para la tasa de interés de corto plazo," Revista Cuadernos de Economia, Universidad Nacional de Colombia, FCE, CID, December.
    17. Rohan Baxter, 1993. "The Loans Standard Model of Credit Money," Working Papers 93/183, Monash University, Department of Compter Studies.
    18. Tae-Hee Jo, 2013. "Saving Private Business Enterprises," American Journal of Economics and Sociology, Wiley Blackwell, vol. 72(2), pages 447-467, April.
    19. Jean-François Goux, 1990. "Les fondements de l'économie de découvert. A propos de la théorie de la liquidité de Hicks," Revue Économique, Programme National Persée, vol. 41(4), pages 669-686.
    20. Jamee K. Moudud, 2010. "Strategic Competition, Dynamics, and the Role of the State," Books, Edward Elgar Publishing, number 4241.

    More about this item

    Keywords

    Liquidity; Value; Quantification; MELT; MEL; Money; Labour; Marx; TSSI; Temporalism;
    All these keywords.

    JEL classification:

    • B20 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - General
    • B24 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Socialist; Marxist; Scraffian
    • B51 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Socialist; Marxian; Sraffian
    • B41 - Schools of Economic Thought and Methodology - - Economic Methodology - - - Economic Methodology
    • B50 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - General

    Statistics

    Access and download statistics

    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:pra:mprapa:2303. 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: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.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.