TY - UNPB
T1 - From Keynes' Liquidity Preference to Gesell's Basic Interest
AU - Anwar, Ahmed
PY - 2020/12/31
Y1 - 2020/12/31
N2 - In his General Theory of Employment, Interest and Money, John Maynard Keynes devotes a section in chapter 23 on the theories of Silvio Gesell, best known for the proposal to use stamped money. Although the account is generally favourable, Keynes finds a great defect in Gesell's theory. We look carefully at this section together with Keynes' own theory of liquidity preference which Keynes considers a completion of Gesell's deep insights. We will argue that Keynes' was in fact mistaken on the defect and that although both Keynes and Gesell identify the same theoretical problem, a special role that money plays in preventing the optimal accumulation of capital, it is only Gesell's reform that in theory provides a solution.
AB - In his General Theory of Employment, Interest and Money, John Maynard Keynes devotes a section in chapter 23 on the theories of Silvio Gesell, best known for the proposal to use stamped money. Although the account is generally favourable, Keynes finds a great defect in Gesell's theory. We look carefully at this section together with Keynes' own theory of liquidity preference which Keynes considers a completion of Gesell's deep insights. We will argue that Keynes' was in fact mistaken on the defect and that although both Keynes and Gesell identify the same theoretical problem, a special role that money plays in preventing the optimal accumulation of capital, it is only Gesell's reform that in theory provides a solution.
UR - http://www.econ.ed.ac.uk/papers/id299_esedps.pdf
M3 - Discussion paper
T3 - Edinburgh School of Economics Discussion Paper Series
SP - 1
EP - 77
BT - From Keynes' Liquidity Preference to Gesell's Basic Interest
PB - Edinburgh School of Economics, University of Edinburgh
CY - Edinburgh
ER -
