This paper studies why the General Theory had so much impact on the economics profession through the 1960s, why that … impact began to wane in the 1970s, and why many economic policymakers cling to many of the tenets of the General Theory. We … qualitatively to patterns discussed in the General Theory, that econometric developments in the area of simultaneous equations made …

Treasury bills and other near-money assets provide owners with liquidity service benefits that are reflected in prices … of money: The liquidity service benefits of near-money assets are more valuable when short-term interest rates are high … and hence the opportunity cost of holding money is high. Consistent with this prediction, the liquidity premium of T …

We construct a model to capture the Keynesian idea that production and employment decisions are based on expectations … of aggregate demand driven by sentiments, and that realized demand follows from the production and employment decisions …

We present an infinite horizon model with capital in which fiat money and barter are two competing means of payment …. Fiat money has value because barter is limited by the extent of a double coincidence of wants. The pattern of exchange … generally involves both money and barter. We find that the Chicago rule is sufficient for Pareto efficiency, while nominal …

We develop a theory that rationalizes the use of a dominant unit of account in an economy. Agents enter into non …

assumption that the central bank targets the money supply with an assumption that it follows a simple interest rate rule. The …

Much of the new theory of macro-economics that has been built upon micro-economic models of imperfect information leads …

This note again refutes Kuska's proposition that equality between the demand for and supply of money ("money market … balance of payments deficit or surplus that equilibrates the money market.The refutation of Kuska's proposition does not … independently achieve a money supply target.Failure to distinguish between the change in the money stock and domestic credit …