Università degli Studi dell’Insubria, Dipartimento di Economia, Via Monte Generoso 71, 21100 Varese, Italy. Email: firstname.lastname@example.org. I wish to thank the anonymous referee of the review for his stimulating comments.
Money as an Institution of Capitalism: Some Notes on a Monetary Theory of Uncertainty
Article first published online: 22 JAN 2013
© 2013 The Author Economic Notes © 2013 Banca Monte dei Paschi di Siena SpA.
Volume 42, Issue 1, pages 75–101, February 2013
How to Cite
Bertocco, G. (2013), Money as an Institution of Capitalism: Some Notes on a Monetary Theory of Uncertainty. Economic Notes, 42: 75–101. doi: 10.1111/ecno.12003
- Issue published online: 21 JAN 2013
- Article first published online: 22 JAN 2013
Dillard notes that to consider money as an institution of capitalism means to emphasize that money is an essential element in explaining fluctuations in income and employment. He states that Keynes's liquidity preference theory offers a sound explanation of money as an institution of capitalism. Keynes's explanation is based on a necessary condition, independent of money: the presence of uncertainty. The objective of the paper is to elaborate a different explanation of the role of money, based on Keynes's 1933 and 1937–39 works, according to which the presence of money constitutes the necessary condition to justify the importance of uncertainty.