I am properly chastised. Now, the question is,
does anyone still hoard? There are plenty of
virtually risk free, short term financial instruments.
The municipal bond market seems pretty damn
liquid these days. And for those of us of more
modest means, there are interest bearing checking
accounts. (Of course there are people, in my
neigborhood as it happens, who can't afford
bank accounts of all, but of course they have nothing
to hoard.)
More to the point, does the concept of liquidity
preference still make any sense. Consumers certainly
don't have to worry about liquidity - we have credit
cards.
Barney
Ellen Frank wrote:
Hey Barney! Shame on you! Speculative
demand for money. General Theory, Ch 13.
"the rate of interest and the price of bonds
have to be fixed at the level at which the
desire on the part of certain individuals to
hold cash (because at that level they feel
"bearish" on the future of bonds) is exactly
equal to the amount of cash available for the
speculative-motive." (p 171) "The concept
of hoarding may be regarded as a first
approximation to the concept of liquidity
preference... the habit of overlooking the
relation of the rate of interest to hoarding
may be part of the explanation why interest
has been regarded as the reward of not-
spending whereas, in fact, it is the reward
of not-hoarding." (p174)Now didn't Marx say that a miser is simply
a capitalist gone mad?Ellen
[EMAIL PROTECTED] writes:
>Ellen Frank wrote:
>
>> ... rentiers hoarding funds and businesses looking
>> to expand.
>
>I don't remember this bit. Why would rentiers
>want to hoard?
>
>--
>Barnet Wagman
>
>email: [EMAIL PROTECTED]
>
>
-- Barnet Wagman email: [EMAIL PROTECTED]
4853 N. Winchester Ave., Apt #2. Chicago, IL 60640-4006 773-275-4084
