From Marketability to Flexibility: Pantaleoni's 'Impure' Theory of Money and Banking

28 Pages Posted: 20 Jun 2006

See all articles by Nicola Giocoli

Nicola Giocoli

University of Pisa - Department of Law

Date Written: June 15, 2006

Abstract

This paper deals with Maffeo Pantaleoni's (1857-1924) analysis of money and banking and aims at demonstrating that the Italian economist developed one and the same theory for both institutions, whose central feature was the notion of flexibility and whose main claim was that the most important function of money and banks is the loosening of the real and temporal constraints caused to production and exchange activities by the complementarity relationships among production factors. It is claimed that this theory is crucial to understand how Pantaleoni passed from the "pure" equilibrium theory of the 1889 Principii to the "impure" theory of his later essays, where no general or partial equilibrium may arise. It is also showed that these later views foreran themes that were to be emphasized decades later by heterodox economists, particularly the Post Keynesian ones.

Keywords: Pantaleoni, money, banking, disequilibrium, structural instability, flexibility

JEL Classification: B13, B31, E59

Suggested Citation

Giocoli, Nicola, From Marketability to Flexibility: Pantaleoni's 'Impure' Theory of Money and Banking (June 15, 2006). Available at SSRN: https://ssrn.com/abstract=910143 or http://dx.doi.org/10.2139/ssrn.910143

Nicola Giocoli (Contact Author)

University of Pisa - Department of Law ( email )

via Collegio Ricci 10
Pisa PI, 56126
Italy

HOME PAGE: http://https://pisa.academia.edu/NicolaGiocoli

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