IDEAS home Printed from
   My bibliography  Save this article

Post Keynesian Monetary Theory: Contrary Empirical Evidence


  • Harvey Cutler

    (Colorado State University)


Two alternative functional forms of the demand for money that focus on how an economy as a whole adjusts its cash balances have been discussed in the literature. One functional form is obtained by regarding the money supply as exogenous and the price level as endogenous and the other by regarding the money supply as endogenous and the price level as exogenous. In this paper the author has offered a third view, a general view which regards both variables as endogenous such that the two alternative views are special cases. Subjecting these hypotheses to empirical testing, the author finds that the Canadian data for the period of 1973-86 reject the two special hypotheses in favor of his general specification.

Suggested Citation

  • Harvey Cutler, 1991. "Post Keynesian Monetary Theory: Contrary Empirical Evidence," Eastern Economic Journal, Eastern Economic Association, vol. 17(3), pages 273-280, Jul-Sep.
  • Handle: RePEc:eej:eeconj:v:17:y:1991:i:3:p:273-280

    Download full text from publisher

    File URL:
    Download Restriction: no

    References listed on IDEAS

    1. Basil J. Moore, 1979. "The Endogenous Money Stock," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 2(1), pages 49-70, October.
    Full references (including those not matched with items on IDEAS)

    More about this item


    Monetary; Post Keynesian;

    JEL classification:

    • E12 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Keynes; Keynesian; Post-Keynesian
    • E51 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Money Supply; Credit; Money Multipliers


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eej:eeconj:v:17:y:1991:i:3:p:273-280. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Victor Matheson, College of the Holy Cross). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.