This paper examines the intellectual heritage of the debate between the Currency and Banking Schools of 19th-century England in regard to three Viennese economists: Rudolf Hilferding, Ludwig von Mises, and Joseph Schumpeter. I first provides a brief summary of the debate between the Currency and...

This paper resolves a long-running debate in the economics literature – the debate over Smith's theory of money and banking – and thereby revolutionizes current understanding about the history and evolution of monetary analysis. Smith did not present either the real-bills theory or a...

The common narrative about Jean-Baptiste Say's treatment of money holdings is that he denied the possibility of hoarding. I show that this interpretation of Say's thinking is erroneous. Drawing upon the various editions of Traité and Cours and other lesser-known texts, I provide substantial...

In this paper, I review some selected literature about or related to the monetary neutrality and show that specific aspects of the monetary (non-)neutrality are actually derived from the underlying welfare consideration and thus their validity or desirability depend on the current state and way...

Walras' Law is one of the most important tenets of Neo-liberal economics. It is supposed to be a Tautological Identity according to which disequilibrium in market economies has a compensatory nature. Hence, disequilibrium in any market would imply an opposite imbalance somewhere else in the...

In his August 30th, 1935 letter to Keynes, Harrod not once, but twice, conceded that Keynes had radically reconstituted the classical and neoclassical theory of the rate of interest by pointing out that the standard theory was one equation short. However, by adding the missing Liquidity...

Extreme mathematical illiteracy played a basic, fundamental role in the assessments made by Joan Robinson, Ralph Hawtrey and Dennis Robertson of Keynes's Theory of Liquidity Preference, which Harrod described in an August 30 1935, letter to Keynes as a major reconstruction of interest rate...

Keynes was extremely clear in Section Four of Chapter 21 of the General Theory that his theory of the rate of interest depended on three elements -The Liquidity Preference function, the m.e.c. schedule, and the consumption function-investment multiplier. All three elements determine the rate of...