Circulation and Effective Demand: A Comment on Nell

Posted: 29 Feb 2008

See all articles by Mark Lautzenheiser

Mark Lautzenheiser

Earlham College - Department of Economics

Yavuz Yasar

University of Denver

Date Written: July 2006

Abstract

In a recent paper in this Journal, Ed Nell presented a theory of circulation intended to unify 'the theories of money, production, and effective demand'. The current comment uses a very simple leakage and injection approach to arrive at some of Nell's results. In doing so, we are able to correct a small slip in Nell's original paper. More importantly, with the slip corrected, the money supply and multiplier processes are seen to be one and the same.

Keywords: Circulation, Money, Macroeconomics

Suggested Citation

Lautzenheiser, Mark and Yasar, Yavuz, Circulation and Effective Demand: A Comment on Nell (July 2006). Cambridge Journal of Economics, Vol. 30, Issue 4, pp. 651-656, 2006, Available at SSRN: https://ssrn.com/abstract=1095577 or http://dx.doi.org/10.1093/cje/bei108

Mark Lautzenheiser (Contact Author)

Earlham College - Department of Economics ( email )

801 National Road West
Richmond, IN 47374-1207
United States
765-983-1892 (Phone)
765-983-1207 (Fax)

Yavuz Yasar

University of Denver ( email )

2201 S. Gaylord St
Denver, CO 80208-2685
United States
303-871-2244 (Phone)

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