On Professor Patinkin’s Money, Interest, and Prices

Luigi Spaventa

doi:10.13133/2037-3643/19115

On Professor Patinkin’s Money, Interest, and Prices

Authors

Luigi Spaventa

DOI:

https://doi.org/10.13133/2037-3643/19115

Keywords:

neoclassical macrotheory, real balance effect, redistributive effects, comparative statics, stability analysis

Abstract

The purpose of this essay is to point out two errors which exist in Patinkin’s Money, Interest and Prices. The aim is to show that the rehabilitation of the neoclassical theory of money and interest is not convincing. I shall try to show that Patinkin’s refined version of the quantity theory presents the same pitfalls as the older versions; that his attack on the Keynesian theory of liquidity preference misses the point, while his theory of the demand for money and of the rate of interest is open to many objections.

References

Brown A.J. (1955), The Great Inflation, 1939-1951, London: Oxford University Press.

Di Matteo M. (2025), “Introduction”, PSL Quarterly Review, 78(314), pp. 285-286.

Kahn R.F. (1954), “Some Notes on Liquidity Preference”, Manchester School, 22(3), pp. 229-257.

Patinkin D. (1948), “Price Flexibility and Full Employment”, American Economic Review, 38(4), pp. 543-564; repr. in Lutz F.A. and Mints L.W. (eds.) (1951), Readings in Monetary Theory (pp. 252-283), Homewood: Richard D. Irwin.

Patinkin D. (1956), Money, Interest, and Prices. An Integration of Money and Value Theory, Evanston: Row Peterson.

Pigou A.C. (1947), “Economic Progress in a Stable Environment”, Economica, 14(55), pp. 180-188; repr. in Lutz F.A. and Mints L.W. (eds.) (1951), Readings in Monetary Theory (pp. 241-251), Homewood: Richard D. Irwin.

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Published

2025-10-13

How to Cite

Spaventa, L. (2025). On Professor Patinkin’s Money, Interest, and Prices. PSL Quarterly Review, 78(314), 287–298. https://doi.org/10.13133/2037-3643/19115