Book contents
- Frontmatter
- Contents
- List of figures
- Preface
- Acknowledgments
- Introduction
- Part I The models of the mature phase
- 1 Walras's conception of a competitive market economy
- 2 The mature models: Not a normative scheme
- 3 The mature models of the barter of stocks of commodities
- 4 Institutions and participants in the model of monetary oral pledges markets
- 5 Disequilibrium and equilibrium in the model of monetary oral pledges markets
- 6 The structure of the mature nondurable consumer commodities model
- 7 The equilibrating processes in the mature nondurable consumer commodities model
- 8 The structure of the mature comprehensive model
- 9 The equilibrating processes in the mature comprehensive model
- 10 Walras and his critics on the maximum utility of new capital goods
- 11 The mature models of the money market
- 12 Iteration in the mature model of tatonnement
- 13 The mature model of the behavior of the entrepreneur
- 14 Walras versus Edgeworth on tatonnement processes
- Part II The models of the phase of decline
- References
- Collation of editions of the Eléments
- Index
11 - The mature models of the money market
Published online by Cambridge University Press: 05 May 2010
- Frontmatter
- Contents
- List of figures
- Preface
- Acknowledgments
- Introduction
- Part I The models of the mature phase
- 1 Walras's conception of a competitive market economy
- 2 The mature models: Not a normative scheme
- 3 The mature models of the barter of stocks of commodities
- 4 Institutions and participants in the model of monetary oral pledges markets
- 5 Disequilibrium and equilibrium in the model of monetary oral pledges markets
- 6 The structure of the mature nondurable consumer commodities model
- 7 The equilibrating processes in the mature nondurable consumer commodities model
- 8 The structure of the mature comprehensive model
- 9 The equilibrating processes in the mature comprehensive model
- 10 Walras and his critics on the maximum utility of new capital goods
- 11 The mature models of the money market
- 12 Iteration in the mature model of tatonnement
- 13 The mature model of the behavior of the entrepreneur
- 14 Walras versus Edgeworth on tatonnement processes
- Part II The models of the phase of decline
- References
- Collation of editions of the Eléments
- Index
Summary
The purpose of this chapter is to explain Walras's mature models of the money market. It is shown how he first constructed a model with a fiat money. He specified the structure and behavior of the market for money, the institutions of the market, and the procedures related to the borrowing and lending of money. To analyze these matters he utilized a dynamic period analysis and assumed that in disequilibrium there is exchange, production, consumption, and saving. Walras then assumed that there is a commodity money and that certain payments are made with fiduciary money. His innovations in the third stage of the comprehensive model were significant theoretical advances which anticipated some of the analyses made during the nineteen-twenties and 'thirties by J.M. Keynes, D.H. Robertson, and J.R. Hicks.
Introduction
This chapter explains the structure and functioning of the market for money in Walras's mature comprehensive model. The market for money is the samething as the market for loans of money capital in his model, as will be seen, and his discussion of it also includes his treatment of circulating capital. He added the detailed modeling of these matters to his mature comprehensive model, thus constructing the third and last stage of its development. It has been shown in earlier chapters that Walras's mature comprehensive model is the basic model that he presented in the second and third editions of the Eléments in the lessons titled “Theory of Capital Formation and Credit.”
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- Walras's Market Models , pp. 235 - 255Publisher: Cambridge University PressPrint publication year: 1996