Details

Autor(en) / Beteiligte

• Laidler, David

Titel

The `Buffer Stock Notion in Monetary Economics

Ist Teil von

• The Economic journal (London), 1984-01, Vol.94, p.17-34

Ort / Verlag

Cambridge: Cambridge University Press

Erscheinungsjahr

1984

Quelle

Business Source Ultimate

Beschreibungen/Notizen

• Discussion of the ''buffer stock'' concept in monetary economics centers on its microeconomic background and the theoretical characteristics that differentiate it from the neo-Austrian analysis and from the conventional Keynesian approach to monetary economics. The basis of the buffer stock idea can be found in its emphasis on trade being a matter of monetary exchange rather than simultaneous barter, and in its characterization of the agent's long-run quantity of money demanded as being a target or average-over-time value of an inventory. Although the neo-Austrian analysis of Robert E. Lucas, Jr., et. al. and the Keynesian approach are very different, both proceed as if the observed demand and supply for money were always equal to each other. The buffer stock notion challenges this aspect of both theories. The concept of price stickiness distinguishes the buffer stock notion from neo-Austrian analysis; the Keynesian approach and the buffer stock approach differ with regard to the existence of a short-run aggregate demand for money function. The buffer stock notion needs to be considered more seriously.