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Friday, May 31, 2013

Dmytri Kleiner — Against the Quantity Theory of Money

Joan Robinson frequently recounts that the great Michal Kalecki once exclaimed to her “I have found out what economics is; it is the science of confusing stocks with flows!” The trouble with the flat earth economists, is that they confuse the dynamic flows of production and consumption that make up an economy with static piles of stuff. Robinson further reasoned that “it is this confusion that has kept the Quantity Theory of Money alive until today.”
P2P Foundation Blog
Dmytri Kleiner: Against the Quantity Theory of Money

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