Keynes's monetary theory: a partial survey

Vol. 13 No. 4 (1993)

Oct-Dec / 1993
Published October 1, 1993

How to Cite

Chick, Victoria. 1993. “Keynes’s Monetary Theory: A Partial Survey”. Brazilian Journal of Political Economy 13 (4):626-36.

Keynes's monetary theory: a partial survey

Victoria Chick
University College London, England.
Brazilian Journal of Political Economy, Vol. 13 No. 4 (1993), Oct-Dec / 1993, Pages 626-636


The title of the paper alerts the reader to the fact that while the role of money
in Keynes’s earlier work is alluded to, it is mostly the monetary contribution of the General
Theory (to which the author is particularly partial) which is surveyed here. The General
Theory represents a breakthrough in monetary theory both broadly and narrowly defined.
Money in the General Theory is all-pervasive. It is essential in the sense of Radner and
Hahn. Money is also essential in allowing Keynes to break away, more profoundly than
before, from equilibrium economics. Monetary theory narrowly defined also represents a
breakthrough: speculative demand is a revolutionary concept, driving a wedge between the
rate of interest and the rate of profit. The concept is elaborated and compared with Hicks’s
treatment. The article ends with a brief section on the finance motive and endogenous money.

JEL Classification: E52; B21; B31.

Keywords: History of economic thought Keynes money