Abstract

RISQUEZ, Justino. Keynes: The Quantitative Theory and Non Neutrality of Money. Revista de Ciencias Sociales [online]. 2006, vol.12, n.2, pp.308-318. ISSN 1315-9518.

In this research a review of Keynes’ proposals is attempted regarding the Classic Quantitative Theory of Money. It is pointed out that before his principal tract, “The General Theory”. Elements were already in evidence that marked a certain distance between his position and the classical orthodoxy. Many elements were in evidence that allowed him to question the perfect dichotomy among the real and monetary elements of the economy that he would take up later in the “General Theory" to analytically establish the link between money and real economic activity through his concept of effective demand and the conductive influence of the interest rate. We also mention the position of Friedman, who developed a new formulation of the quantitative theory as a useful theory of the demand of money.

Keywords : Keynes; liquidity; interest; monetary demand.