Monthly Archives: January 2012
“In view of the apparently widespread impression that the influence of liquidity considerations on the rate of interest is a new discovery, the present author may perhaps be excused for pointing out that more than ten years ago he described … Continue reading
“It is one of the oldest facts known to economic theory that changes in the quantity of money, or changes in the ‘velocity of circulation’ (or the ‘demand for money’), will deflect the rate of interest from its equilibrium position … Continue reading
The graph explained.
Part IV of Hayek’s The Pure Theory of Capital is the chimeric “unwritten” 2nd “volume” of Hayek’s Pure Theory, the monetary part that goes beyond the “barter economy” and considers the phenomena of interest and production coordination and dis-coordination when … Continue reading
And five book recommendations.