Search

This paper addresses the problem of the conceptualization of social structure and its relationship to human agency in economic sociology. The background is provided by John Maynard Keynes's writings on uncertainty and conventional behavior on the stock market, and the analysis consists of a comparison of the social ontologies of the French Intersubjectivist School and the Economics as Social Theory Project in the light of these observations. The theoretical argument is illustrated with concrete examples from a prominent study of the stock market boom of the 1990s.

A focus on western Germany, which had the potential to lift eastern Germany out of its economic malaise as a result of its well-established and advanced market economy, is presented. Germany's performance in the new European Monetary Union (EMU) environment before and after the 2001 global downturn is investigated.

A macroeconomic perspective on the interaction between the financial system and the level of economic activity has been proposed. It focuses on the relationship between liquidity preference, investment and how confidence fits into the picture. Two Keynesian theories of liquidity preference have been evaluated and both found to give insight into some parts of the monetary thought of John Maynard Keynes.

There is lack of any inherent difference between the theory of financial intermediation and the theory of liquidity preferences. Both are similar in dynamic contexts. Institutional investments bear a direct relationship with the availability of liquidity. Savings have a negligible effect on investments. Keynesian economics explain the finance motives with these perspectives. The debate over the validity of Keynes theory is irrelevant.

The argument about the time-inconsistency literature that not only seriously confuses the substance of the rules vs discretion debate, but also posits an implausible view of monetary policy is presented. Most worryingly, the inflationary bias featured prominently in the time-inconsistency literature has encouraged the development of a dangerously one-sided approach to central bank independence that entirely ignores the potential risks involved in maximizing central bankers' latitude for discretion.

The plan that John Maynard Keynes had devised for a central bank in India in 1913 and his concentration on the conduct of monetary policy are explained. The monetary upheals of World War I and its consequences are also discussed.

Research is presented concerning the influence of alterations in time preferences and technology which instantaneously affect interest rates. The application of the analysis of disequilibrium to the loanable funds theory is discussed.

Offers a fresh interpretation of Keynes's `finance motive.' Assessment of competing interpretations; Interpretation of the finance motive as an intrinsically dynamic conception, which displays important aspects of Keynes's monetary thought; Liquidity preference theory as a theory of financial interpretation.