Depression and the theoretical framework Keynes presents in The General Theory, the assumption of a constant money stock …

that the demand for money is unchanged despite a bad harvest. In contrast, Thornton, anticipating Wicksell's natural … Ricardo, Thornton implicitly made the untenable assumption of unchanged demand for money. …

This paper relates Keynes's discussions of money, the state theory of money, financial markets, investors' expectations … argued that the central bank can influence the long-term interest rate on government bonds and the shape of the yield curve … mainly through the short-term interest rate. Investors' psychology, herding behavior in financial markets, and uncertainty …