Publication details for Dr Mark HayesHayes, M. G. (2018). The Liquidity of Money. Cambridge Journal of Economics 42(5): 1205-1218.
- Publication type: Journal Article
- ISSN/ISBN: 0309-166X (print), 1464-3545 (electronic)
- DOI: 10.1093/cje/bey018
- Further publication details on publisher web site
- Durham Research Online (DRO) - may include full text
Author(s) from Durham
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.