...the classical dichotomy implies that real variables and monetary variables are independent of each other. From a heterodox perspective, by contrast, both kinds of variables are explained by the relationship established between the central bank, bank lending, and entrepreneurs’ “animal spirits” every time effective demand is deemed profitable, reversing thereby the causality of the quantity-theory-of-money formula.Naked Keynesianism
What is the 'Classical Dichotomy'?
David Fields
