ECON 460 Lecture Notes - Lecture 7: Risk Premium, Open Market Operation, Monetary Policy
20 Sep 2013
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Chapter 14: the classical theory of the rate of interest. Check marshall, cassel, carver, flux, taussig, walras: i(r) = s(r) Self-regulatory process of adjustment which takes place without the necessity for any special intervention or grandmotherly care on the part of the monetary authority. Unlike the neo-classical school, who believe that saving and investment can be actually unequal, the classical school proper has accepted the view that they are equal. (is marshall classical or neoclassical?) What"s going on in the diagram? (which would we typically put on the vertical axis, r or i?) The wild duck (from ibsen play of that title. ) Appendix to chapter 14: appendix on the rate of interest in marshall"s principles of. Economics, ricardo"s principles of political economy, and elsewhere. Chapter 15: the psychological and business incentives to liquidity (business can"t by psychological?) What did the quantity theory of money say? (mv=py)
