Download this Paper Open PDF in Browser

Keynes’s Monetary Theory of Interest

31 Pages Posted: 20 Jun 2012  

Geoff Tily

Office for National Statistics (ONS)

Date Written: May 2012


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

Suggested Citation

Tily, Geoff, Keynes’s Monetary Theory of Interest (May 2012). BIS Paper No. 65c. Available at SSRN:

Geoff Tily (Contact Author)

Office for National Statistics (ONS) ( email )

London, SW1A 2AA
United Kingdom

Paper statistics

Abstract Views