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Leon Walras' Theory of Money
Author(s) -
Cirillo Renato
Publication year - 1986
Publication title -
american journal of economics and sociology
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.199
H-Index - 38
eISSN - 1536-7150
pISSN - 0002-9246
DOI - 10.1111/j.1536-7150.1986.tb01922.x
Subject(s) - economics , keynesian economics , monetarism , quantity theory of money , endogenous money , money supply , order (exchange) , neoclassical economics , wage , monetary policy , monetary economics , market economy , finance
A bstract . Leon Walras'theory of money , in spite of its serious flaws, provides important insights which should prove of interest to modern monetarists. He was one of the few economists in the classical tradition to detect major deficiencies in the quantity theory of money. He favored a strong public policy to regulate the money supply in order to ensure the preservation of economic equilibrium. Most of his arguments were motivated by his concern for the wage earners because he knew that they were the first to suffer in times of economic crisis.