Showing papers by "Directorate-General for Economic and Financial Affairs published in 1991"
TL;DR: In this paper, it is argued that this innovation was not a historical accident and that it fit into Lionel Robbins' program to elaborate economics as the science of scarcity and choice, and that Hicks was not alone at the London School of Economics in applying marginal analysis to monetary theory.
Abstract: J. R. Hick's paper "A Suggestion for Simplifying the Theory of Money" (1935) can be considered as a prefiguration of modern macroeconomic portfolio theory. It is argued here that this innovation was not a historical accident. It fit into Lionel Robbins' program to elaborate economics as the science of scarcity and choice. Moreover, Hicks was not alone at the London School of Economics in applying marginal analysis to monetary theory. S. P. Chambers, in his "Fluctuations in Capital and the Demand for Money" (1934), presented a thorough investigation of the demand for money along similar lines. Copyright 1991 by WWZ and Helbing & Lichtenhahn Verlag AG
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