396 THE GENERAL THEORY OF EMPLOYMENT
Monetary policy (contd .)—and wages, 267-9Mercantilists on, 341-2Hume on, 343 n.
its essential properties, 222-44,293
its position in the economicsystem, 173, 292-4and debts, 167 n,its carrying costs, 225-7, 233-4,238
the demand for, 84, 194-5,248-9, 263-4
its elasticity of production, 230-231,234-6,238
its elasticity of substitution, 231,234, 238
and rate of interest, 166-74in Mercantilist thought, 340-41,345 - 7 . 358-9
Money income, see IncomeMoney, income-velocity of, de-fined, 201 ; 194-5, 209, 258,2 99> 289, 304Money, quantity of—an ultimate variable, 247-8and bond prices, 200and employment, 171, 173and hoarding, 174and rate of interest, 167-8, 171-174, 205, 233
and liquidity, 196-9, 241 n.and the price-level, 173, 295-9,3°3“9
and quantity theory, 209, 304-306
and rentiers, 290
and saving and investment, 79-
85
and money-wages, 171, 173,258, 266-70
in Mercantilist thought, 340-41,
Locke on, 342-4Money, quantity theory of—restated, 285, 295-6, 305-6and liquidity, 208-9and full employment, 289Locke’s theory, 343-4Money, stamped, 234, 357-8Money, velocity of circulation of,Locke on, 343
Money {contd .)—
Money - wages, see Wage - unit;
Wages, moneyMonopoly prices, 268-70Mortgages, 241Multiplier, 113-131in Great Britain, 122in the United States, 122, 127-8and stability, 250-52Pigou ’s rejection of, 277Kahn on, 113-15, 119Multiplier, the employment, de-fined, 115; 248, 273Multiplier, the investment—defined, 115; 127, 248and the quantity of money, 298-9Multiplier, marginal, 126Mummery, A. F., 364-70Mun, Thomas, 344
National Debt, 264National Dividend, 5 n 37-9, seealso Income
“Natural forces”, see Laissez-faire“Natural” tendencies not a law ofnecessity, 254
“Natural” rate of interest, see In-terest, rate ofNeo-classical School, 177Net investment, see Investment, net;
Saving, see Saving , net“Neutral” rate of interest, 183, seeInterest, rate ofNew Deal —and enterprise, 162and stocks, 331-2
New York investment market, 159,160 and n., 172
Non-monetary economy, a defini-tion of, 239; 222
Non-static economy, 99, 146, 293Normal cost, 70-71Normal profit, 72in the Treatise on Money, 77
Obsolescence, 163
Open-market operations, 197-9, 267-268
Open system—
in classical theory of wages, 11and the multiplier, 120and reduction of wages, 262-3and wage policy, 270, 301