| Summary: | The theoretical foundations of the Post Keynesian view of money are examined,
including the nature of money, role of uncertainty and time, and the use of
equilibrium concepts. This provides a backdrop against which the Post
Keynesian analysis of interest rates, investment behaviour: inflation and
demand determination is presented in a framework of non-neutral money and
Keynes' principle of effective demand. A model of the Post Keynesian theory of
money is presented, with arguments as to why the IS/LM model of the
neoclassical synthesis is considered deficient. The money supply endogeneity
view is explored, together with Keynes' finance motive. The open economy
case is considered, with emphasis on a small open economy. The monetary
policy perspectives of the Post Keynesian camp are examined. The implications
for South Africa are considered in respect of money supply targeting, interest
rate policy, anti-inflation measures, public debt management, exchange rates
and Reserve Bank objectives. === Economics === M.A. (Economics)
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