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

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  • 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

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    File URL: https://mpra.ub.uni-muenchen.de/2303/1/MPRA_paper_2303.pdf
    File Function: original version
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    References listed on IDEAS

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

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    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.

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    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

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