Markets, Money and Capital

Half-title......Page 3
Title......Page 5
Copyright......Page 6
Contents......Page 7
Figures......Page 10
Tables......Page 12
Contributors......Page 13
Preface and acknowledgments......Page 15
Hicks\'s economic theorizing......Page 17
Choice, time, causal structures......Page 21
Irreversibility and freedom of choice......Page 25
Liquidity, money, and macroeconomics......Page 27
The structure of the book......Page 30
Part I The Intellectual Heritage of John Hicks......Page 55
Social choice and majority rule......Page 57
Liberty, minority rights and the relevance of empirical features......Page 60
Economic efficiency, social freedoms, and the role of economists......Page 61
2 An economist even greater than his high reputation......Page 65
Introduction......Page 68
Before 1936......Page 69
Hicks, in isolation, at the birthplace of The General Theory......Page 70
1936 and afterwards: Hicks\'s \'reformation\' of The General Theory......Page 73
The dawning of doubts......Page 77
‘Conversion’......Page 80
What sort of conversion?......Page 84
Final remarks: the Hicks dilemma......Page 85
Introduction......Page 88
Cambridge and the LSE......Page 89
The meeting grounds......Page 91
The move to Cambridge......Page 94
The issues debated during Michaelmas term 1935......Page 97
The letters......Page 101
A marriage in the making......Page 105
Concluding remark......Page 107
Macmillan......Page 108
Moving to OUP......Page 112
The OUP structure and Hicks......Page 113
Hicks as OUP author......Page 114
The move to Blackwell and the return to OUP......Page 117
Hicks as OUP Delegate......Page 118
Personal memories......Page 119
Note on sources......Page 120
Books by Hicks (published by Oxford University Press except where noted)......Page 121
Translations of Hicks\'s books......Page 122
Introduction......Page 125
The Theory of Wages (first and second editions)......Page 126
Value and Capital and its mathematical appendix......Page 127
A Contribution to the Theory of the Trade Cycle and A Revision of Demand Theory......Page 129
Capital and Growth......Page 131
Critical Essays in Monetary Theory......Page 132
A Theory of Economic History......Page 133
Capital and Time: A Neo-Austrian Theory......Page 134
The Crisis in Keynesian Economics......Page 135
Economic Perspectives......Page 136
Collected Essays on Economic Theory (volume I, Wealth and Welfare; volume II, Money, Interest and Wages; volume III, Classics and Moderns)......Page 137
A Market Theory of Money......Page 138
Conclusion......Page 139
Reviews of Hicks\'s books cited (by title and chronological order)......Page 140
Part II Markets......Page 143
The ontology of general equilibrium......Page 145
Where John Hicks came from......Page 146
The map of pure economic theory......Page 148
The general equilibrium of exchange......Page 150
Dynamics, temporary equilibrium, and income......Page 153
The working of the dynamic system......Page 156
Postscript: beyond empty general equilibrium theory......Page 159
On theory and history......Page 162
A link between capitalism and history before capitalism......Page 163
Markets and capitalism: two approaches......Page 165
Averages and norms: Hicks\'s theory of economic history......Page 166
The causal nexus from markets to institutions......Page 167
The relationship between market and production......Page 168
The role of non-market organizations......Page 169
The rise of the market as an agent of transformation......Page 171
Fix-price, flex-price, and sticky wages......Page 173
The distribution of monetary assets and the \'probable differences in the reactions of different members of the community\'......Page 174
The dynamics of capitalism and the interplay of fix-price and flex-price markets......Page 175
The optimum mix of fix-price and flex-price markets......Page 176
From status to contract......Page 178
An economist\'s explanation of the instability of capitalism......Page 179
Introductory remarks......Page 180
Household disposable income......Page 181
The rate of return to capital......Page 185
Conclusions......Page 190
The consumption function of the Prometeia quarterly econometric model of the Italian economy......Page 191
Statistical sources......Page 197
Part III Money......Page 199
Introduction......Page 201
Monetary disturbances in a multi-currency economy......Page 202
The theory and management of imaginary money......Page 204
The \'European proportion\' and the \'Minister of Money\'......Page 206
Account money, bank money, and imaginary money......Page 207
Stylized historical analysis and monetary architectures......Page 216
Introduction......Page 220
Hicks\'s monetary theory: the institutional framework of the credit economy......Page 223
Quantity of available credit......Page 224
Portfolio and liquidity theories......Page 226
Credit and prices......Page 228
Credit and the savings/investment relationship......Page 232
Need for credit management......Page 234
Exercise of managerial responsibility......Page 235
Concluding remark......Page 240
Introduction and summary......Page 241
Hicks and monetary economics......Page 243
Banks, risk, and capital......Page 251
Implications of (old and new) capital standards for banking and economic stability......Page 263
Relationship between expected and unexpected losses for non-stochastic LGD......Page 264
Relationship between expected and unexpected losses for stochastic LGD......Page 265
Proof of the additive property of the risk contribution of the i-th position......Page 266
Introduction......Page 268
The simplest approach to asset prices: a naive analysis......Page 271
Theoretical foundations......Page 274
Moment pricing theory......Page 277
Higher-order moments, risk aversion, stochastic dominance, and the like......Page 279
Moment pricing and intertemporal models......Page 282
The St. Petersburg paradox......Page 284
The Allais paradox......Page 286
The Kahneman and Tversky (1979) paradox......Page 287
The Tversky and Kahneman (1981) paradox......Page 288
Conclusions......Page 290
Part IV Capital and Dynamics......Page 291
Introductory remarks......Page 293
Equilibrium distribution and capital intensity......Page 294
The induced bias of inventions......Page 295
The elasticity of substitution: a broad view......Page 296
Commodity elasticity of substitution and technical elasticity of substitution......Page 297
Multisectoral analysis......Page 298
The two components of the economy-wide elasticity......Page 299
Substitution-driven growth......Page 300
Concluding remarks......Page 302
Macroeconomic income distribution, inequality, and growth......Page 303
Sir John Hicks and the Cambridge School of Distribution......Page 305
The Harrod–Domar \'knife-edge\' and possible solutions of the \'dilemma\'......Page 311
The second answer to the Harrod–Domar dilemma: the assumption of a flexible aggregate saving ratio......Page 313
The hypothesis of a differentiated interest rate on savings......Page 318
The generalization of class differences in a steady-state growth model......Page 320
The genesis of socio-economic classes: analysis and policy implications......Page 321
Conclusions......Page 323
Introduction......Page 325
Ceilings, floors, and non-linearities......Page 327
The full employment barrier......Page 329
An extended IS-LM......Page 331
The steady state......Page 332
Simulating the dynamics......Page 333
Sensitivity analysis......Page 334
The \'bounded rationality\' hypothesis......Page 335
The overall dynamics with learning......Page 337
Concluding remarks......Page 338
Simulations generating figure 17.1 and table 17.1......Page 340
Simulations generating figure 17.2 and table 17.2......Page 342
Preamble......Page 344
A neglected basin of attraction in CTTC......Page 346
The \'dead\' accelerator and the \'one-sided\' oscillator!......Page 352
The pleasures of reading Hicks......Page 356
Capital, growth, and unemployment......Page 362
The real nature of business cycles......Page 363
Inventions must increase the social dividend......Page 366
Lederer and Neisser on Wicksell\'s analysis of Ricardo\'s machinery problem......Page 369
A theory of economic history......Page 376
A fix-wage traverse with a strongly forward-biased innovation......Page 378
Structural economic dynamics: complementary analytical perspectives......Page 381
The time structure of decisions......Page 383
In what sense can Capital and Time be said to be \'Austrian\'?......Page 386
The many dimensions of capital and economic transitions......Page 390
Production as a profile of inputs and outputs and as a profile of capital values......Page 393
A very extended and totally persuasive impossibility theorem......Page 396
Introduction: single period theory and continuation theory......Page 398
Harmonizing the phases of construction and utilization: the framework of a monetary economy......Page 400
Resource constraints......Page 403
Investment decisions......Page 405
Price and wage changes......Page 406
Out-of-equilibrium economic paths: consumption-driven and investment-driven scenarios......Page 407
Conclusions: the intertemporal complementarity of investment and consumption......Page 419
References......Page 421
Name index......Page 449
Subject index......Page 457