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Монетаристко Развитие На Теорията На Търсенето На Пари
[Monetarist development of the money demand theory]

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  • Sedlarski, Teodor

Abstract

This article suggests a possible approach to the explanation of the monetarist money demand theory and the related policy implications in the teaching of History of economic thought. For the purpose of better understanding Milton Friedman’s contribution the emphasis is put on the conceptual development from the classical quantity theory of money, through the Cambridge cash-balance approach, Walras’ „encaisse désirée“, Keynes’ liquidity preference to the monetarist restatement of the quantity theory of money and its implications for other key economic problems like the causes of inflation and the methods for reducing the unemployment. The discussion is introduced with a short note on Friedman’s life and work and concludes with an analysis of the inferences and recommendations for the economic policy derived from the theoretical arguments.

Suggested Citation

  • Sedlarski, Teodor, 2012. "Монетаристко Развитие На Теорията На Търсенето На Пари [Monetarist development of the money demand theory]," MPRA Paper 56694, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:56694
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    File URL: https://mpra.ub.uni-muenchen.de/56694/1/MPRA_paper_56694.pdf
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    References listed on IDEAS

    as
    1. Milton Friedman, 1957. "Introduction to "A Theory of the Consumption Function"," NBER Chapters, in: A Theory of the Consumption Function, pages 1-6, National Bureau of Economic Research, Inc.
    2. Laidler, David, 1981. "Monetarism: An Interpretation and an Assessment," Economic Journal, Royal Economic Society, vol. 91(361), pages 1-28, March.
    3. Milton Friedman, 1971. "A Theoretical Framework for Monetary Analysis," NBER Books, National Bureau of Economic Research, Inc, number frie71-1.
    4. A. C. Pigou, 1917. "The Value of Money," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 32(1), pages 38-65.
    5. Milton Friedman & Anna J. Schwartz, 1963. "A Monetary History of the United States, 1867–1960," NBER Books, National Bureau of Economic Research, Inc, number frie63-1.
    6. Harry Markowitz, 1952. "Portfolio Selection," Journal of Finance, American Finance Association, vol. 7(1), pages 77-91, March.
    7. Milton Friedman, 1957. "A Theory of the Consumption Function," NBER Books, National Bureau of Economic Research, Inc, number frie57-1.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Monetarism; Friedman; Keynes; quantity theory of money; money demand; permanent income hypothesis; theory of nominal income; liquidity preference; Cambridge cash-balance approach;
    All these keywords.

    JEL classification:

    • A2 - General Economics and Teaching - - Economic Education and Teaching of Economics
    • B22 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Macroeconomics
    • B3 - Schools of Economic Thought and Methodology - - History of Economic Thought: Individuals
    • B4 - Schools of Economic Thought and Methodology - - Economic Methodology
    • E41 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Demand for Money
    • E51 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Money Supply; Credit; Money Multipliers

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