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Maurice Allais on the quantity theory of money: the ontological restatement


  • Ramzi Klabi

    (AMSE - Aix-Marseille Sciences Economiques - EHESS - École des hautes études en sciences sociales - AMU - Aix Marseille Université - ECM - École Centrale de Marseille - CNRS - Centre National de la Recherche Scientifique)


This paper is about a little known part of Allais' oeuvre, namely his restatement of the quantity theory of money. It shows that this restatement contains an original refinement of the notion of stability of the relative demand for money. To explain this refinement, this essay investigates Allais' concept of psychological time – a concept strongly emphasised but not duly examined by most of his commentators. It shows how Allais' restatement of the quantity theory amounts – in the final analysis – to a theory of time. It explores an analogy, Allais mentioned, between his quantity theory and the theory of relativity in physics, revealing thereby the ontological nature of this restatement.

Suggested Citation

  • Ramzi Klabi, 2019. "Maurice Allais on the quantity theory of money: the ontological restatement," Post-Print hal-02417403, HAL.
  • Handle: RePEc:hal:journl:hal-02417403
    DOI: 10.1080/1350178X.2018.1546885
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    References listed on IDEAS

    1. Maurice Allais, 2001. "Fondements de la dynamique monétaire," Post-Print hal-00829593, HAL.
    2. Allais, Maurice, 1997. "An Outline of My Main Contributions to Economic Science," American Economic Review, American Economic Association, vol. 87(6), pages 3-12, December.
    3. Georges Prat, 1999. "Temps psychologique, oubli et intérêt chez Maurice Allais," Post-Print halshs-00173013, HAL.
    4. Allais, Maurice, 1969. "Growth and Inflation: A Reply to the Observations of the Discussants," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 1(3), pages 441-462, August.
    5. Allais, Maurice, 1969. "Growth and Inflation," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 1(3), pages 355-426, August.
    6. Milton Friedman & Anna J. Schwartz, 1982. "Monetary Trends in the United States and United Kingdom: Their Relation to Income, Prices, and Interest Rates, 1867–1975," NBER Books, National Bureau of Economic Research, Inc, number frie82-2, January.
    7. Cagan, Phillip, 1969. "Allais' Monetary Theory: Interpretation and Comment," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 1(3), pages 427-432, August.
    8. Allais, M, 1975. "The Hereditary and Relativistic Formulation of the Demand for Money: Circular Reasoning or a Real Structural Relation?," American Economic Review, American Economic Association, vol. 65(3), pages 454-464, June.
    9. Allais, Maurice, 1974. "The Psychological Rate of Interest," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 6(3), pages 285-331, August.
    10. Bertrand R. Munier, 1991. "Nobel Laureate: The Many Other Allais Paradoxes," Journal of Economic Perspectives, American Economic Association, vol. 5(2), pages 179-199, Spring.
    11. Allais, Maurice, 1972. "Forgetfulness and Interest," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 4(1), pages 40-73, Part I Fe.
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