Premium
DIE THEORETISCHE UND EMPIRISCHE BEDEUTUNG DER PATINKIN ‐ KONTROVERSE*
Author(s) -
Heertje A.
Publication year - 1964
Publication title -
kyklos
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.766
H-Index - 58
eISSN - 1467-6435
pISSN - 0023-5962
DOI - 10.1111/j.1467-6435.1964.tb02459.x
Subject(s) - economics , imperfect competition , value (mathematics) , cash , competition (biology) , imperfect , perfect competition , microeconomics , neoclassical economics , macroeconomics , philosophy , ecology , linguistics , machine learning , biology , computer science
SUMMARY This article deals with the empirical and theoretical significance of the so called Patinkin‐debate. Some authors are inclined to disparage the contribution of P atinkin to economic theory, others consider his writings as a new starting point of monetary economics. It is attempted to reconcile both views in stressing the consequences of the fundamental hypothesis implied in P atinkins integration of monetory and value theory, the assumption that prices are flexible. The role of administered prices is confronted with the real balance effect. It is argued that the problem raised by P atinkin is still there as P atinkins solution applies only for perfect competition. It is a theoretical problem of major importance to integrate monetary and value theory in case of imperfect competition. In practice the whole discussion is less important as there exists always a price level determined by the amount of money and the demand for cash.