Victoria Chick (Emeritus Professor of Economics, University College, London) gives a nice talk here about the nature of money, given at the Positive Money Conference (January, 2013).
The “real” exchange model of mainstream economics – with its emphasis on neutral money, the strict quantity theory of money, and money as a “veil” – is deeply flawed, and simply cannot properly understand money and its effects on economic systems.
Most insightful is the comment that the alleged “money illusion” is not necessarily an illusion at all, but a real worry given the profoundly non-neutral nature of money (e.g., think of debt deflation).
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Thanks for this. I am sure you have seen and posted her speech at Gresham College from 2012. http://www.gresham.ac.uk/lectures-and-events/greshams-law-in-economics-background-to-the-crisis
ReplyDelete"In Economics, bad theory has driven out good."
Maybee something for you LK?
ReplyDeleteProf-Brad De Long at Berkley-"ANY EXPLANATION FOR THIS OTHER THAN THAT ROBERT MURPHY SIMPLY DOESN'T DO HIS HOMEWORK?"
August 26, 2013
http://delong.typepad.com/sdj/2013/08/any-explanation-for-this-other-than-that-robert-murphy-simply-doesnt-do-his-homework.html