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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.

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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.

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