This essay analyses the core proposition of loanable funds theory that changes in technology and time preferences directly and immediately affect interest rates. Applying what may be seen as a generalised financial-buffers approach to the analysis of disequilibrium, we find that loanable funds...

This essay offers a fresh interpretation of Keynes's 'finance motive.' Some competing interpretations are assessed, which, it is argued, are inconsistent with the conceptual framework of Keynes's monetary analysis. The finance motive is interpreted as an intrinsically dynamic conception, which...