Neoclassical Theory of Money (Monetary Issues): With Graphs, Equations & Formulas! Neoclassical theory of money has been developed as a part of reaction against the Keynesian revolution. Keynes repudiated the classical theory of full - employment equilibrium and demonstrated the possibility of less - than - full employment equilibrium. The counter - revolution which was initiated by Pigou in 1943, [...]
In this article we will discuss about:- 1. Introduction to Keynes Liquidity Preference Theory of Interest 2. Demand for Money 3. Supply of Money 4. Determination of Rate of Interest 5. Changes in Demand for and Supply of Money 6. Significance of Liquidity Preference Theory of Interest 7. Criticisms 8. Conclusion. Introduction to Keynes Liquidity Preference Theory of Interest: Keynes, [...]
This Article will help you to learn about the difference between classical capital theory, the neoclassical loanable funds theory and the Keynesian liquidity preference theory. Difference between Classical, Neoclassical, and Keynesian Theories of Interest Difference # Classical Theory: 1. Definition of Interest - According to the classical economists, interest is a reward paid for the use of capital. 2. Nature [...]