The Monetary Mechanism and Its Interaction with Real Phenomena

摘要: T HIS paper traces the major developments of lasting value in our understanding monetary mechanism and its role economy which have occurred since early forties, when process digesting General Theory [ii] integrating it with earlier streams thinking had been more or less completed. I consider here primarily state thought as about mid-fifties, leaving to another time consideration evolution that has since. The middle I950's provides, my view, a useful landmark reviewing macroeconomic theory, up are, on whole, rather different purpose approach from those later. development first-mentioned period seems me consist largely refinements, clarifications, basic framework, already laid out by forties. most significant contributions recent period, other hand, tended issues terms theory asset management portfolio decisions, exploiting concurrent advances saving, managerial economics and, importantly, choice under uncertainty. These developments, not led any revision rejection positions reached midfifties, but concerned providing better determinants demand for money relation supply various assets, physical well financial, final transactors "financial intermediaries." This is, essence, summary longer rigorous statement expect complete later, which, together an exploration I950's, will be published elsewhere Because is nature summary, frequently found necessary sacrifice rigor omit nearly all proofs many references. material divided into six sections. first brief comparison model believe would widely accepted I944, corresponding 1950's. following sections, then, examine some detail implications mid-fifties relationship crucial variables economy, lines fiscal policy.