Monetarists and Keynesians: Their Contribution to Monetary Theory

aggregate demand assumed assumption bond prices capital assets Chapter consumption function current income demand for money demand price determined disequilibrium effective demand equation excess demand excess supply existence fall Figure fiscal policy flexible fluctuations Friedman full employment general-equilibrium important increase interest elasticity interest rate investment expenditure involuntary unemployment IS/LM model J. M. Keynes Keynes effect Keynesian economics Keynesian model Keynesian system labour market level of aggregate level of income level of output liquidity preference LM curve marginal Monetarists monetary policy monetary theory money balances money demand money income money market money supply money wages neoclassical synthesis permanent income Pigou effect price level price of capital problem production function Quantity Theory rate of interest real wage reduce rise shift short run simply store of value supply of labour supply of money supply price theoretical transactors transmission mechanism unemployed velocity wages and prices Walras's Law Walrasian system wealth effect Y₁