Keynes’s Monetary Theory of Interest

Abstract

Now there is no part of our economic system which works so badly as our monetary and credit arrangements; none where the results of bad working are so disastrous socially; and none where it is easier to propose a scientific solution. (J. M. Keynes: Speech to the Liberal Party, December 1923, The Collected Writings of John Maynard Keynes XIX, Vol I, pp 158-9)

Full publication: Threat of fiscal dominance?

Keywords: Keynes, bank money, liquidity preference, long-term rate of interest, debt management policy, tap issue, capital control, international clearing union

JEL Classification: B22, E12, E43, E50, F30