Abstract not found

Levy Institute scholars and conference participants. The purpose of the series is to disseminate ideas to and elicit comments from academics and professionals. The Levy Economics Institute of Bard College, founded in 1986, is a nonprofit, nonpartisan, independently funded research organization devoted to public service. Through scholarship and economic research it generates viable, effective public policy responses to important economic problems that profoundly affect the quality of life in the United States and abroad.

Levy Institute scholars and conference participants. The purpose of the series is to disseminate ideas to and elicit comments from academics and professionals. The Levy Economics Institute of Bard College, founded in 1986, is a nonprofit, nonpartisan, independently funded research organization devoted to public service. Through scholarship and economic research it generates viable, effective public policy responses to important economic problems that profoundly affect the quality of life in the United States and abroad.

Levy Institute scholars and conference participants. The purpose of the series is to disseminate ideas to and elicit comments from academics and professionals. Levy Economics Institute of Bard College, founded in 1986, is a nonprofit, nonpartisan, independently funded research organization devoted to public service. Through scholarship and economic research it generates viable, effective public policy responses to important economic problems that profoundly affect the quality of life in the United States and abroad.

Levy Institute scholars and conference participants. The purpose of the series is to disseminate ideas to and elicit comments from academics and professionals. Levy Economics Institute of Bard College, founded in 1986, is a nonprofit, nonpartisan, independently funded research organization devoted to public service. Through scholarship and economic research it generates viable, effective public policy responses to important economic problems that profoundly affect the quality of life in the United States and abroad.

Levy Institute scholars and conference participants. The purpose of the series is to disseminate ideas to and elicit comments from academics and professionals. Levy Economics Institute of Bard College, founded in 1986, is a nonprofit, nonpartisan, independently funded research organization devoted to public service. Through scholarship and economic research it generates viable, effective public policy responses to important economic problems that profoundly affect the quality of life in the United States and abroad.

Levy Institute scholars and conference participants. The purpose of the series is to disseminate ideas to and elicit comments from academics and professionals. Levy Economics Institute of Bard College, founded in 1986, is a nonprofit, nonpartisan, independently funded research organization devoted to public service. Through scholarship and economic research it generates viable, effective public policy responses to important economic problems that profoundly affect the quality of life in the United States and abroad.

Abstract not found

The Working Paper Series is intended to make available the preliminary results of current research within CoBAR, in the areas of accounting, finance, information systems and business. Feedback to the authors is encouraged and welcomed in order to assist their ongoing research efforts. Views expressed in the papers are those of the authors and not necessarily those of CoBAR or the University of South Australia. Use of any results from these papers should clearly attribute the work to the authors and not to CoBAR or the University of South Australia.

In this paper I review recent Post-Keynesian debates about the notion of liquidity preference in the context both of Keynes ’ writings on and after the General Theory and also, modern portfolio theory. First, the paper reviews the Hayek-Sraffa debate to focus on certain issues raised by its protagonists which provide a continuing refrain over the years to follow. In particular, this section dwells on Sraffa’s comments about the relationship obtaining between asset prices in the transition from one monetary equilibrium to another. The second section of the paper examines the General Theory, in part through the critical, yet obviously sympathetic eyes of Richard Kahn (1984). At this point, Keynes ’ views about the influence of equity prices on investment are addressed to demonstrate the appropriateness of a portfolio-based approach to the analysis of liquidity preference effects. The next section of the paper takes off from Kahn’s concerns about the instability of the demand for money and liquidity preference schedules. Hyman Minsky (1975) and Victoria Chick’s (1983) interpretations of the General Theory are brought together. The aim of this synthesis is to unbundle the workings of both the money and capital markets so that each of the individual effects of fluctuations in liquidity preference can be isolated. Both Minsky and Chick follow Keynes in presuming that the monetary authorities can control the money supply, although each question this presumption at certain points in