A Note on Chapter 29 of Keynes’s Treatise on Money

Loizos, Konstantinos (2011): A Note on Chapter 29 of Keynes’s Treatise on Money.

Abstract

The question posed by Chapter 29 of the Treatise is the following: Is it possible, for fluctuations in liquid capital to counterbalance fluctuations in working capital and thus provide the means – apart from the motive – for a recovery after a slump? This note attempts to give an account of how Keynes answers to this question by building a theory of the forward markets.

• Item Type: MPRA Paper
• Language: English
• Keywords: Forward Markets, Trade Cycle
• Subjects: B - History of Economic Thought, Methodology, and Heterodox Approaches > B2 - History of Economic Thought since 1925 > B26 - Financial Economics

References

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Keynes, J. M. (1930) Treatise on Money, Vol. 2 The Applied Theory of Money, London

Keynes, J. M. (1936) The General Theory of Employment, Interest and Money, MacMillan Cambridge University Press, 1973

Milonas M. N. & S. B. Thomadakis (1997) “Convenience yield and the option to liquidate for commodities with a crop cycle”, European Review of Agricultural Economics, 24 (2), 267-283.

Thomadakis, S. B. & M. D. Xanthakis (2006) Money and Capital Markets, Athens: Stamoulis Publishing (in Greek)