Reconstructing the Quantity Theory (II)
20 Pages Posted: 2 Aug 2011 Last revised: 23 Feb 2015
Date Written: August 2, 2011
Part I and II of the present paper reconstruct the quantity theory from structural axiomatic foundations. This yields a coherent view of the interrelations of quantity of money, transaction money, saving–dissaving, liquidity–illiquidity, rates of interest, leverage, allocation of labor, prices, profits and employment. Part II focuses on the symmetric and asymmetric process of nominal and real saving–dissaving and on the monetization of nonfinancial assets. The distinction between liquidity preferences of individual households and the household sector as a whole proves to be crucial. From the objective structural axiom set follows a structural inflation formula.
Keywords: new framework of concepts, structure-centric, axiom set, complementary time preference, time transfer, real rate of interest, inventory, store of value, nonmonetary profit, transmission mechanism, asset/liability structure, capital market
JEL Classification: E10, E20, E40
Suggested Citation: Suggested Citation