This paper analyses the effects of money shocks on macroeconomic aggregates in a tractable flexible-price, incomplete-markets environment that generates persistent wealth inequalities amongst agents. In this framework, current inflation redistribute wealth from the cash-rich employed to the...

This paper analyses the e¤ects of money shocks on macroeconomic aggregates within a flexible price, incomplete markets environment that generates persistent wealth inequalities amongst agents. In this framework, unexpected money shocks redistribute wealth from the cash-rich employed to the...

We show that the equilibrium in a Keynesian model with as many equations as markets is undetermined. This is because the equation for the labor market does not contribute to the determination of the equilibrium : the Walras’s law holds only for markets for goods, assets and cash balance. For...

This paper traces R. G. Hawtrey’s main contributions to the theory of the lender of last resort national both (LLR) and international (ILLR). This theory is a continuation of one of the traditions of the classical period, started by Henry Thornton (1802) , that differs in important points from...

The article analyses Hawtrey's influence on Keynes's monetary thought. On the one hand Hawtrey carries on ricardian tradition and on the other he introduces the monetary macroeconomic paradigm. His theory includes both exogenous and endogenous money. Keynes is inspired by Hawtrey's approach but...

The aggregation of budget constraints of the enterprises and the households allows us to throw a new light on the controversy between Keynes and Harrod concerning the classical theory of the rate of interest. It appears that the critique of the classical theory that Keynes formulated does not...