The “Cambridge” critique of the quantity theory of money: A note on how quantitative easing vindicates it

References

• Colander, D. “The Stories We Tell: A Reconsideration of AS/AD Analysis.” Journal of Economic Perspectives, 1995, 9, 169–188.
   Web of Science ®Google Scholar
• Costancio, V. “Panel Discussion on Central Banking with Large Balance Sheets.” 2015 US Monetary Policy Forum, New York. Mimeo, February 27, 2015. mimeo
   Google Scholar
• Dardi, M. “Kahn’s Theory of Liquidity Preference and Monetary Policy.” Cambridge Journal of Economics, 1994, 18, 91–106.
   Web of Science ®Google Scholar
• De Long, B. “On the Fed’s Policy of Quantitative Easing Coupled with Promises Not to Let Prices Recover Any of the Ground Relative to Trend They Lost in the Recession: Hoisted from Three Years Ago.” Mimeo, January 29, 2015 (available at http://equitablegrowth.org/feds-policy-quantitative-easing-coupled-promises-not-let-prices-recover-ground-relative-trend-lost-recession-hoisted-three-years-ago/).
   Google Scholar
• Feldstein, M. “The Inflation Puzzle.” 2015 (available at www.project-syndicate.org/commentary/low-inflation-quantitative-easing-by-martin-feldstein-2015-05).
   Google Scholar
• Graaf, M. “The Quantity Theory of Money in Historical Perspective.” KOF Swiss Economic Institute Working Paper, Zurich, 2008.
   Google Scholar
• Gros, D.; Alcidi, C.; and De Groen, W. “Lessons from Quantitative Easing: Much Ado About So Little?” CEPS Policy Brief no. 330, 2015.
   Google Scholar
• Kahn, R.F. “The Relation of Home Investment to Unemployment.” In Selected Essays on Employment and Growth. Cambridge: Cambridge University Press, [1931], 1972, pp. 1–27.
   Google Scholar
• ———. “Some Notes on Liquidity Preference.” In Selected Essays on Employment and Growth. Cambridge: Cambridge University Press, [1954] 1972, pp. 72–96.
   Google Scholar
• ———. “Minutes of Evidence Memorandum of Evidence submitted to the Radcliffe Committee.” HMSO, London, 1958, 739–746.
   Google Scholar
• ———. “Memorandum of Evidence Submitted to the Radcliffe Committee.” In Selected Essays on Employment and Growth. Cambridge: Cambridge University Press, [1958] 1972, pp. 124–153.
   Google Scholar
• ———. The Making of Keynes’s General Theory. Cambridge: Cambridge University Press, 1984.
   Google Scholar
• Kaldor, N. “Speculation and Economic Stability.” In Essays on Economic Stability and Growth (pp. 17–58). London: Duckworth, [1939] 1960.
   Google Scholar
• ———. “Monetary Policy, Economic Stability and Growth.” In Essays on Economic Policy (pp. 128–153). London: Duckworth, [1958] 1964.
   Google Scholar
• ———. “How Monetarism Failed.” Challenge, 1985, 28, 4–13.
   Google Scholar
• ———. Ricordi di un economista, ed. M.C. Marcuzzo. Milan: Garzanti, 1986.
   Google Scholar
• Keynes, J.M. The General Theory of Employment, Interest and Money. In E. Johnson and D. Moggridge (eds.), The Collected Writings, vol. 7. London: Macmillan, [1936] 1973.
   Google Scholar
• ———. “The General Theory and After.” In E. Johnson and D. Moggridge (eds.), The Collected Writings, vol. 13. London: Macmillan, 1973.
   Google Scholar
• ———. Can Llloyd George Do It? in In E. Johnson and D. Moggridge (eds.), The Collected Writings, vol. 9, pp. 86–125.
   Google Scholar
• Koo, R. “Why US Quantitative Easing ‘Worked’ Better Than Other QEs.” FT, Alphaville, July 19, 2016.
   Google Scholar
• Lucas, R. “Nobel Lecture: Monetary Neutrality.” Journal of Political Economy, 1995, 104, 661–682.
   Web of Science ®Google Scholar
• Marcuzzo, M.C. “The Demise of the Quantity Theory of Money.” History of Economic Ideas, 2002a, 10, 49–62.
   Google Scholar
• ———. “The Collaboration Between J. M. Keynes and R. F. Kahn from the Treatise to the General Theory.” History of Political Economy, 2002b, 34, 421–447.
   Web of Science ®Google Scholar
• Patinkin, D. “On the Chronology of the General Theory.” Economic Journal, 1993, 103, 647–663.
   Web of Science ®Google Scholar
• Robinson, J. “The Theory of Money and the Analysis of Output.” In Collected Economic Papers, vol. 1. Oxford: Blackwell, [1933] 1951.
   Google Scholar
• Targetti, F. Nicholas Kaldor: The Economics and Politics of Capitalism as a Dynamic System. Oxford: Clarendon Press, 1992.
   Google Scholar
• Tutino, A., and Zarazaga, C. “Inflation Is Not Always and Everywhere a Monetary Phenomenon.” Economic Letters 9, Federal Reserve Bank of Dallas, June 2014.
   Google Scholar
• Wray, R. Money and Credit in Capitalist Economies: The Endogenous Money Approach. Aldershot: Edward Elgar, 1990.
   Google Scholar
• Yellen, J. “Inflation Dynamics and Monetary Policy” The Philip Gamble Memorial Lecture, University of Massachusetts, Amherst, 2015 (available at www.federalreserve.gov/newsevents/speech/yellen20150924a.htm).
   Google Scholar