The Liquidity of Money

Hayes, M.G.

Abstract

In his General Theory, Keynes implicitly defines liquidity as stability of value with respect to changes in the state of long-term expectation. This contrasts with the usual conception of liquidity as convertibility and with leading Post-Keynesian interpretations. The proposed definition explains why Keynes places so much emphasis on liquidity, while assuming perfect markets for capital goods, and writes of the liquidity of land. It also sheds new light on the distinction Keynes makes between the liquidity of money and the ‘liquidity’ of organised investment markets.

Citation

Hayes, M. (2018). The Liquidity of Money. Cambridge Journal of Economics, 42(5), 1205-1218. https://doi.org/10.1093/cje/bey018

• Journal Article Type: Article
• Acceptance Date: Apr 25, 2018
• Online Publication Date: Jun 20, 2018
• Publication Date: Aug 18, 2018
• Deposit Date: Jun 22, 2018
• Publicly Available Date: Jun 20, 2020
• Journal: Cambridge Journal of Economics
• Print ISSN: 0309-166X
• Electronic ISSN: 1464-3545
• Publisher: Oxford University Press
• Peer Reviewed: Peer Reviewed
• Volume: 42
• Issue: 5
• Pages: 1205-1218
• DOI: https://doi.org/10.1093/cje/bey018
• Public URL: https://durham-repository.worktribe.com/output/1323636