The Liquidity of Money

Hayes, M.G.

doi:10.1093/cje/bey018

The Liquidity of Money

Hayes, M.G.

Authors

M.G. Hayes

Abstract

In his General Theory, Keynes implicitly defines liquidity as stability of value with respect to changes in the state of long-term expectation. This contrasts with the usual conception of liquidity as convertibility and with leading Post-Keynesian interpretations. The proposed definition explains why Keynes places so much emphasis on liquidity, while assuming perfect markets for capital goods, and writes of the liquidity of land. It also sheds new light on the distinction Keynes makes between the liquidity of money and the ‘liquidity’ of organised investment markets.

Citation

Hayes, M. (2018). The Liquidity of Money. Cambridge Journal of Economics, 42(5), 1205-1218. https://doi.org/10.1093/cje/bey018

Journal Article Type	Article
Acceptance Date	Apr 25, 2018
Online Publication Date	Jun 20, 2018
Publication Date	Aug 18, 2018
Deposit Date	Jun 22, 2018
Publicly Available Date	Jun 20, 2020
Journal	Cambridge Journal of Economics
Print ISSN	0309-166X
Electronic ISSN	1464-3545
Publisher	Oxford University Press
Peer Reviewed	Peer Reviewed
Volume	42
Issue	5
Pages	1205-1218
DOI	https://doi.org/10.1093/cje/bey018
Public URL	https://durham-repository.worktribe.com/output/1323636

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Copyright Statement
This is a pre-copyedited, author-produced version of an article accepted for publication in Cambridge Journal Of Economics following peer review. The version of record Hayes, M. G. (2018). The Liquidity of Money. Cambridge Journal of Economics 42(5): 1205-1218 is available online at: https://doi.org/10.1093/cje/bey018.